Reminds me of DNF's MorningWood. 
they definitely bare a resemblance, I made a couple versions with a terrain surrounding the town and even making the whole town on a floating island. Neither was ideal, so I stuck with the rigid skybox style of the original, even though it causes some strange occlusion of the map, since it is a large L-shape, it helps make the portal areas into smaller chunks
Generally the whole map needs to have more shoulder room, especially in the interior spaces.