This is what's often called the " 'S e construction ", which is the typical construction for defining what something is by using the copula verb ("Is").
Here the "it" at the end of the sentence is being defined as "a good place". A gloss of the construction would be "It is a good place that it is", though the understood meaning would be "It's a good place".
Thanks. The gloss hits my ear as quite poetic. Much of what I'm encountering here has an elusive familiarity, with the structure rather hard to nail down at this point. I'm four generations from Scotland but that line was the last to cross over -- I wonder if I may be picking up some unexpected echoes.