You'd never find such a flat city near a fjord. OK, I'll give you Oslo, but that's not in a stereotypical fjord like foreigners like to see when they visit Norway. In those fjords, it isn't many towns to speak about either, but that's OK. Making it auntentic would also make it boring, so go for what you have.
The architecture isn't entirely Nordic either, but I guess you can let that pass, as Norwegian traditional architecture is pretty boring, and I guess that goes for Sweden, Iceland and Greenland as well.
The windmill looks awesome, though. Keep it up!