I thought it was the "center" of your town. Regardless, as you purchase more land to the right side, your dropzone also moves to the right. I am unsure if land "up and down" effects as well.
I had no idea about the LZ u ntil recently after reading a post here. My lz isnt really great but i havent had a chance to do much as i was busy with halloween and xmas quests. Probably will try moving some buildings although it sucks that it will shift after buying land.
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