I concur with this statement. The flashes for the lighting seem to happen a bit more rapidly than expected, maybe it could be toned down with how frequently it happens?. Also, I assume this isn't the final color scheme either? Brighter colors could add some more vibrancy.
Just out of curiosity, will we be able to walk on the sidewalk at some point? a minor thing, but I was just curious.
Also some suggestions/opinions here
#1. I was also thinking the enemies could bust out of a window or door giving a dynamic entrance before jumping into fight. Like the beat'em up games I played in the 90's (thought it would look cool.)
#2. What do you think about having the windows of the buildings light-up (yellow tint)? You can have
silhouettes of Npc's
getting it on 
. Or since there are a couple of alleyways, how about Npc's
getting it on as we pass by?
#3.
Living in the City from Sonic R would be a good background soundtrack for this level. Instrumental of course:
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