You have plenty of opportunities for theming a local business directory.
First, "LocationVille businesses" will be your larger theme, which can then be broken down into subcategories such as "LocationVille real estate", "LocationVille restaurants", "LocationVille lawyers", "LocationVille doctors", etc.
To further support your authority on "LocationVille" you can solicit links from Generally focused local directories that don't have as deep an index of business listings. Local ISPs usually have some kind of directory and could also be strong potential link partners.
As each subcategory becomes definitive enough and builds authority you have the opportunity to then solicit links from other industry specific, but geographically non-specific directories.
For example, you could begin campaigning for links from various legal directories for your now authoratative "LocationVille lawyers" sub category.