Google is continually making changes to the algorithm to get local business listing to show up in a search. Last week saw yet another tweak. The 10-pack is now the 7-pack.
Search using the city modifier:

In my opinion the 10-pack took up to much space. it hogged the top of the page making it impossible for a local website to get the #1 position. It still impossible for a local website to get the number one spot on the page organically but at least cutting down the 10-pack to 7-pack moves a few organic listing above the fold.
Search w/out the modifier:

I’d still like to see 3 or 4 local websites listed first in the results like in universal search and then the Lucky 7-pack. I think having organic results for sites that deserve it would only be fair.
The site owners have worked hard to gain the #1 position and should be prominently displayed towards the top in either search results.
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