Create an ABACABA city
Python 2, 82 bytes

f=lambda n,s=1:n*"'"and"  _"*s+f(n-1,0)+"_"*(n-2)+"\n%c|%s|"%(64+n,"_"*n)+f(n-1,0)


I noticed no one had posted the binary recursion method and decided to give it a shot...and now with a trick borrowed from Sherlock9, it is the shortest python answer! (Also, thanks to xnor for one more shortening.) (And then Dennis who shaved a handful more...)

Ungolfed:

def f(n,s=1):
    if n&gt;0:
        strsofar = "  _" if s==1 else ""        #prepend overhang for top-level call
        strsofar += f(n-1,0)                    #build the city above the current line
        strsofar += "_"*(n-2)                   #add the overhang to reach the current tower
        strsofar += "\n%c|%s|" % (64+n, "_"*n)  #write the current (center) line
        strsofar += f(n-1,0)                    #build the city below the current line
        return strsofar
    else: 
        return ""                               #only this line will be executed when n==0 (base case)

print "  _"+f(input())