Have you done any card sorting with users from different groups? Given a broad audience of different customer groups I would suggest making an educating decision based on feedback from that study.
The main question based on both options is: Do all users first self-identify themselves based on who they are: a visitor, a resident or a business? Or do they first attempt to find necessary information based on an action group: live, work, enjoy, find?
On a personal note
Option 1 - gives a more warm / personable feel
- I am worried that all audiences would know where to find the information they would be looking for. I can see many items could potentially fall under multiple primary nav items (may not be a bad idea to include those into all applicable sections?).
- 'Live' maybe too broad of a menu item as it encapsulates all other items in itself
Option 2 sounds a bit cold, but may grant a better customer segmentation of where the user needs to go to find the information they are looking for
- Can all users easily self identify themselves as one of those three types in every use-case?
- When would I identify myself as a "visitor"? That is a very loose term which may cause confusion.