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I ran the demo at Pax Prime for around 40 hours and had one person try something nobody else tried when closing the town square.
I don't have a copy of the demo deck any more as my copy disappeared when cleaning up the Paizo area, but I believe the town square closing text reads like this.
When closing, each character at this locations recharges a card and then draws a card.
The unique player recharged a blessing of the gods from his discard pile and then drew a card.
I am not sure if the card works like that but the chapel in the demo set mentions recharging from the discard so I allowed it.

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Playing a card is defined at the beginning of that section (p.10).
"Playing a card means activating a card's power by revealing, displaying, discarding, recharging, burying, or banishing the card"
Since you are choosing and recharging a card based on a location's when permanently closed ability you are not playing the card being recharged.
I am not sure if recharging a card from your discard as a benefit of closing a location is against the spirit of the rules. You just cleared out the town square, it would make sense that you could recover a dropped holy relic and receive a gods blessing or find blacksmiths shop to quickly sharpen a dulled sword.
I really like how some of the mechanics of the game mesh with the cards. By the end of the convention I pointed out that most boons with banish make sense to have banish, like healing potions or the guard that valiantly sacrifices himself to save you.

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I asked for the clarification because I didn't see anywhere in the rules that the default location for any discard, recharge, bury, or banish is from your hand. Banish shows up all over the place and you have done a good job of almost always calling out exactly what is banished.
The example isn't a very good one as that operation is mechanically redundant like recharge the bottom card of your deck or banish any card in the box. I could see an affect the discards from your buried cards though(spell Make Whole maybe).
Thank you for the responses.