A collective is a group of separate entities that share or are motivated to co-habit a location because they share a common goal.
"A place they want to be"
A collective is a group: families, teams, residents, or neighbours; so called because each may be considered as a whole.
"The people they want to be with"
A collective is where entities, separate in themselves; ie residents, business, services, assemble to contribute together as a whole.