Every resident in or around New York heard ambulances 24/7. Everyone knew someone that got very sick (not that anyone could even prove that they had it since testing was extremely scarce). The virus was still very new and there were legitimate reasons to suspect the death rate was much higher than it thankfully ended being. I even remember hearing rumors from friends, family, and coworkers that the feds were going to enforce a "wuhan-style" quarantine in NYC. In terms of general fright, it reminded me a lot of 9/11.
It would've been political malfeasance for the mayor/governor to do nothing in these circumstances. In terms of infections, the city recovered relatively quickly and most of the lockdown was lifted by Summer (indoor dining obviously being one of the holdouts here that hurt restaurants a lot)
I think the worst "medium-term" effects are the loss of tourists and office workers. There's very few legal restrictions on offices reopening at this point, but very few have actually come back. The triple of lockdowns, vanishing tourists, and vanishing office workers is just too much for small businesses.