A project like the one you describe needs to have a place associated with it. and that place needs to be an area, not just a point. Areas like counties, states, provinces and countries are already defined in Google Maps, so they are also defined in iNaturalist. But towns are not. You’ll need to draw a border for your town as a kml file, save it as a Place in iNaturalist, and use that as the place file for your project. This tutorial may help: https://forum.inaturalist.org/t/how-to-draw-a-new-place-in-google-mymaps-for-uploading-to-inaturalist/41063, or just ask someone on this forum to help you make the Place file.
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