Hello, I entered a competition for a logo design MyCity, and I decided to make a tut how to make a great looking simple logo.
Finished Result will look like this:

Let's start...
1. First you need to create a new Transparent 500x500 layer (
File/New).
note: It would be easier if you turn on rulers (
View/Rulers).
2. Create elypse with elypse tool. Start making elypse from 2x2 (with
Shift button), and finish about 16. As on picture.
3. Make again elypse but you need to select
Subtract from shape area 
. Start making from aprox. 3.4.
4. Then in layers tab, on "
Shape 1" right click and
Rasterize Layer.
5. With
Brush Tool 
, paint some lines as edges of buildings...
6. Fill up empty space with
Paint Bucket Tool, and again repair empty space with
Brush Tool. You would have something like this.
7. But edges are not precious and nice. We need to select
Rectangular Marquee Tool 
, and slowly selecting areas about buildings. If you want to select all in just one step, you need to press
Shift button while selecting. After you select, press
del button on your keyboard.
8. This part is over. When you all finish with painting and deleteing, you can rename layer to eg. "
Town Form", and you need to enable some effects (right click on layer, and select
Blending Options).



9. With
Rectangle Tool make a windows. I choose to create 29 windows. And later you can group them in to
smart object. Also you can create new grup

and rename it to e.g
Windows, as I was.

10. Now select
Magic Wand Tool, and check all three option boxes (Anti-Alias, Contiguous and Sample All Layers). Hide all windows what you painted, and select
Town Form layer, and click on this object.
11. Now it's time to select color of your logo, or with
Gradient Tool make a fade effect. After that deselect and unhide windows.
12. Create text with
Horizontal Type Tool and type a company name. I used
MinionPro fonts/BoldCn.
13. Add some effect (right click on layers).





14. Your logo is finished!

PSD File is available
:: Here ::