Learn English – Origin of “to be in fat city”

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What is the origin of the phrase "to be in fat city" meaning "to do well" (financially or otherwise)? A search with an internet search engine suggests that it is of fairly recent vintage, as the two earliest occurrences in newspapers I could locate are from the 1990s:

http://articles.latimes.com/1994-03-20/local/me-36359_1_earthquake-readiness
I kept thinking we would be in fat city if the house was left standing.

http://www.nytimes.com/1995/09/03/realestate/appraising-the-role-of-the-appraiser.html
When the appraisers got licensed they thought they would be in fat city, but Federal licensing standards are so high that they had to do a lot more work.

Best Answer

Fat City

noun Slang.
an easy and prosperous condition or circumstance: With a new house and a better-paying job, she's in Fat City.
Also, fat city.

Origin:
1960–65

[EDIT]
As for why 'city,' Joe-ks has this to say under 'Phrases, Clichés, Expressions & Sayings,' though I'm not sure of the authenticity (Scroll down to 'Fat city'):

Fat city

Meaning: To have luxuries.
Example: When I land my movie contract we will be in fat city.
Origin: This is a type of slang that adds city to a word to indicate a "location" of some condition - "if you do that you'll end up in trouble city." And of course "fat" has been used for centuries as a synonym for rich and well-to-do people. From the fact that only the rich had the money to buy the food and the servants to do the work - both things adding to their size.

[emphasis added]

And the fun part:

Have you ever been to Fat City?

If you’ve ever been to Manteca, California, then you have indeed been there since the word “manteca” in Spanish literally means “lard.” Check it out the next time you’re in the meat section at Vons where they sell little bricks of it.

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