Perticular Elk said:
There is a game known as Savage2 that combines pvp with simcity you might be interested. its quite esoteric with only about hundred people playing it but its a good game.
Savage 2? The RTS-FPS hybrid? Not likely to be what he's looking for, laddie.
On topic:
I'd honestly suggest you look at the earlier
Settlers titles. While #7 is relatively combat-free, #s 5 and 6 were considered to pretty much occupy the intersection you describe here - city-building and combat.
If you fancy going back a pace,
Immortal Cities: Children of the Nile is a brilliant next step for the city-building genre in general. It's slow, and not very combat-focused, but worth playing nonetheless. If you want to try something off-board a bit, the
Stronghold series might suit (just stay away from the third incarnation; last I heard it had more bugs than that one third-rate insect-themed shooter that came out a while back)
Rise of Nations is more RTS than city-builder, but it does emphasize resource management somewhat more than others of its ilk, so it might suit.
And then we've pretty much reached the limit of this modern era. Just about anything in this list [http://en.wikipedia.org/wiki/Chronology_of_city-building_video_games] might be worth looking at; have fun!