Sounds like he’s trying to make it a shining city on the hill to give an example of how liberty works best for everybody. I’d rather start with an existing city.
The problem with that idea is that it’s impossible from a legal standpoint. Thank Lincoln and his absolute Federal supremacy for that. You just can’t create a little town, anywhere in the US, that would have the kind of laws that would show how liberty works. You’d still be subject to your Federal masters, no matter how free the local laws are.