Complex sentence: The municipality (originally the parish) was named after the old "Spangereid" farm (Old Norse: "Spangarheiði") this this is where the local Spangereid Church was located.
Split into simpler sentences: The municipality (originally the parish) was named after the old "Spangereid" farm (Old Norse: "Spangarheiði"). This is where the local Spangereid Church was located.