Well, not on the city itself, but beneath it, sure, and in lonely places in the wilderness, and beneath the sea, and inhabiting strange, unexplored islands. I found these pseudo-Rabelasian monstrosities on the always-excellent Monster Brains yesterday, and they're exactly the sort of bizarre creepy-yet-somewhat- whimsical monsters I want to use in my setting. They look like the guys who were taking a cigarette break when it came time for the Temptation of St. Anthony, or something Sir John Mandeville saw on his travels while tripping on strange drugs with Prester John.
Here's a few: