It's a complicated subject; the formation of towns near the railroad tracks. In the old days the relationship was far more intimate, with industries and commercial districts immediately next to the right of way, now days the tracks just cut through what seems to be an endless sea of suburban housing. The best towns will sprawl on both sides of the track, which can be hard in Trainz considering the crossings and the track spacing. A model of the current day will probably have some industry close to the tracks, or at least a couple abandoned factories or warehouses. A commuter line will have more small businesses near the tracks to serve the commuters, and can even have shopping centers and upscale housing. If it's a strictly freight line you are modeling, it will probably be not so integrated with the town, and in fact be fenced off, walled off, or otherwise hidden from the town as much as possible. Of course since that would be less than optimum real estate along the tracks, the homes and businesses would probably be a bit "seedier" there, unless it's the rare locality that has embraced it's industrial nature.
Nice work with the screens, by the way.