They named their town after the "Hall of Gimli"
and in the Eddas, Gimli is not a person but a place:
From eNotes:
In Norse mythology, Gimlé (alternately Gimli) was a place where the survivors of Ragnarök were to live. It is mentioned in the Prose Edda and Völuspá and described as the most beautiful place on Earth, more beautiful than the Sun.
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