Well everybody who posted an answer got it right although Cuckoo was the first to reply. The correct answer for the pictured building is the Rathaus (town hall) in the Marienplatz in downtown Munich, Germany. As Danny pointed out, it became the New Town Hall when it replaced the the old town hall in 1874. The clues were not specific to the picture, so I would have also accepted simply Munich as a correct answer.
But Carmen Sandiego isn't caught that easily. While we were distracted by the Rathaus Glockenspiel she and her henchmen slipped away to Franz Josef Strauss airport and fled to another part of the world. Near or far? We don't know. Maybe the locals will have some clues. Check back next week.