This song could be played with the capo off, making some of the chords a lot easier, but 
making some of them a lot harder.
So I'll stick with a capo on the first fret. All chords are relative to the capo.

Some of the fingering can hurt your hand, so you might be able to find better fingerings 
the trickier chords, but I've tried to make them as painless as possible.

Also, try to let most of the notes ring, especially the highest notes of each chord.

Where the chord has one less note than the others, it is usually a spot where you slide 
the notes of the next chord.

Capo on first:

Intro:           Verse:
e|-3-(flute)----||-1-----1-0-------|---------------|-1-----1-0-------|
b|-----------1--||-----------------|-3-----3-------|-----------------|
g|-----------0--||---0-------0---0-|---3-------3---|---0-------0---0-|
d|-----------2--||-----2-------2---|-----3-------3-|-----2-------2---|
a|-----------3--||-3-------3-------|-5-------5-----|-3-------3-------|
e|--------------||-----------------|---------------|-----------------|
             C     Cadd4   C         Bb/D            Cadd4   C

e|-0-----0---------|---------3--------|-----------------|-----------------|
b|---0-------0-----|-6----------------|-4-----4---------|-4-----4---------|
g|-----0-------0-0-|---3---3----3-----|---5-------5-----|---4-------4---0-|
d|-2-------2-------|-----5--------5-5-|-----7-------7---|-----6-------6---|
a|-----------------|-6-------6--------|-8-------8-------|-7-------7-------|
e|-----------------|------------------|-----------------|-----------------|
   Em                Ebadd2  Eb         F7                Emaj7

e|---------0-----0-|-------------||
b|-3-----3---------|--1---3---1--||
g|---0-------0-----|--0---0---0--||
d|-----2-------2---|--2---3---2--||
a|-3-------3-------|--3---3---3--||
e|-----------------|-------------||
   Cadd2   C          C(strum these with your fingernail or a pick)

Chorus:
e|----------------|-4-----4--------|-----------------|-------------------|
b|-3-----3--------|---3-------3----|-4-----4---------|-1-------3---------|
g|---2-------2----|-----3-------3--|---3-------3---0-|---2-------4---(5)-|
d|-----4-------4--|-3-------3------|-----5-------5---|-0---4-------5-----|
a|-5-------5------|----------------|-6-------6-------|---------5---------|
e|----------------|----------------|-----------------|-------------------|
   D                Bb7              Eb                D7       G

e|-----------------|-----------------|-----------------||
b|-5-----5---------|-4-----4-------4-|-------4---------||
g|---5-------5-----|---3-------3-----|---3-------3---0-||
d|-----5-------5-5-|-----5-------5---|-----5-------5---||
a|-7-------7-------|-6-------6-------|-6-------6-------||
e|-----------------|-----------------|-----------------||
   C/E               Eb

Solo: (flute over verse chords, and with a capo on first fret)
e|-----|-3-1---|----------|----------|-----|-3-1-----|---------|-------|-|
b|-1---|-------|-1--3-5---|----------|-----|------1--|-----3-5-|-------|-|
g|-----|-------|----------|-0--2-4---|-3---|---------|-1-------|----0--|-|
d|-----|-------|----------|----------|-----|---------|---------|-2-----|-|
a|-----|-------|----------|----------|-----|---------|---------|-------|-|
e|-----|-------|----------|----------|-----|---------|---------|-------|-|


Structure:

Intro

Verse
City bird haven't you heard
hasn't anybody told you?
These city blocks can't hold you
Your place is in the sky how can I show you?

Verse
City bird haven't you learned
of the boundlessness of your freedom
The sky is your blue kingdom
You neglect your wings like you don't need them

Chorus
City bird maybe these hands that feed you need you
Maybe you understand that city bird

Solo (over verse chords)

Chorus
City bird maybe these hands that feed you need you
Maybe you understand that city bird

Verse
City bird haven't you heard
hasn't anybody told you?
These city blocks can't hold you
Your place is in the sky how can I show you?

Outro: last two bars of verse again.

Cheers.