I think local pronunciation is a good place to start when making a Lojban name for a place, but there is no need to insist on the most exact approximation possible when there are reasons to deviate. Other factors such as wider recognizability or making it more Lojbanic may be taken into account.
What I don't recommend at all is using capitals or commas in names of places. Stress and syllabication are completely free in cmevla, so there is no reason to impose the writer's preferred one on the readers. I can understand it for names of people, if someone wants to indicate which stress or syllable pattern they prefer to hear when being called by others, but in the case of place names that does not apply. The word {.paris.} can be pronounced with stress on the first vowel or the last, or in none, and it remains the same word. It can even be pronounced with syllabic "r" if you like, and it is still the same word. There is really no reason to uglify its spelling (that's my aesthetic judgement anyway) by inserting capital letters and commas here and there. The word will be the same word with or without them. For example {zoi .PAris. whatever .paRIS.} is valid, because the opening and closing delimiter word is the same word. mu'o mi'e xorxes