I'd just write it as it is in the original text, "Meruâ—‹do". If anyone can figure out what town it is, that can go in a tn, or a comment. I'm pretty sure it's the girl who's speaking that line, btw.
I changed the second balloon. You may want to edit it further (perhaps breaking the sentence in two).
Chapter 1 - Myself Yourself is a Normal ADV Dating SimI'm walking around this town where I've returned after five years, as I follow the thread of my memories.And can you get out of here? You're a nuisance.Ah, the lunch shop over that was over there has become a parking lot?!This temple will recover my HP and MP...This is a Shinto shrine, not a temple.And over here there's a warp point?!memo memoMy name is Hidaka SanaHuh, they built a convenience store in this town too...Sana has changed...This is the town of Meruâ—¯do