What is the setting of "majestic"

Ferndale

Explanation:

Location. The town of Ferndale, California provided many of the interior and exterior locations for The Majestic. The namesake theater was built as a false-front in the Ferndale municipal parking lot, and many Main Street buildings were modified by the film company.

misty passage from the question

c. "but thy eternal summer shall not fade" (line 9)