I would like to know if passive mobs can spawn intown because i got a good idea for something to do with them from a youtube video.
They can technically spawn on claimed residences. However with as many animals that are in Town I don't think any more will spawn naturally.
Mob spawners wont work in town, and minecraft won't let animals spawn naturally when there are so many other animals around town already unfortunately.
Animals won't naturally spawn in any available area if there are already an excessive amount of animals, such is with the case in town. From minecrafte wiki: In multiplayer, mob caps are shared by all players, no matter where they are. If one player can make a lot of mobs spawn near them, say, with a mob farm, players elsewhere in the world will see fewer mobs of the same category. Likewise, if a player can prevent mobs from spawning near them, perhaps by hanging around a large body of water and illuminating nearby caves, they will effectively dump their mobs on everyone else. http://www.minecraftwiki.net/wiki/Spawn I have pasted a link to the wiki if you are interested in seeing the logic behind the spawning process, but basically there are too many animals in town already, so it is unlikely many will spawn naturally.