In Spanish and other romance languages próxima still means the next one, and the closest one. If you're in a train and you ask when will you arrive to the next station, it also mean it is the closest one in the direction you're traveling. So yes it can mean nearest and next to come but that's not a problem in the languages I speak.
For instance closed can mean not open or near that's also no problem. Let próxima be the nectunt the cost one, the cost to come
Ubi urbs proxima est, as well. Imagine you are wandering along some path and happen to meet someone. It may be quite late and you want to find a hostel. So you could ask the above mentioned question. It would not feel as natural to say Excuse me, where is some nearby city or some close city, more likely would you ask for the nearest city, imho. But it would certainly not be wrong as such.