The local lord in turn borrowed the capital's grid pattern when laying out medieval Takayama, which became known as Little Kyoto. 
Before it was known as Little Kyoto, Takayama's layout was created based on the capital's grid pattern.
Little Kyoto was later known as Little Takayama.
We know what our expenses are, but don't actively budget.
The two boys are swimming in the ocean.
A man is riding a horse.
Yes I think it's perfectly reasonable to parse it that way.
The people are in a gym
Young people gather in a street.