Please explain the Spectral Horseman

[jpower]

Hello all. I recently played a game and the villain was the Spectral Horseman. We were a little confused about his basic ability from the minion chart called "The Horseman Rides Tonight!" I understand the first part about resolving the fight round. I don't understand the following part of the rule:

"If there are no heroes in the space, instead place 2 investigation at the location and the shadow track moves 1 step closer to darkness".

What do they mean "no heroes in the space"? When the event occurs it doesn't neccessarily correlate with a particular space. This is what confused the hell out of us.

That brings me to another part of the rule that says: "After any fight here (or even if there is no fight), the spectral horseman moves along the shortest path to the Town Hall, fighting every hero along the way as normal for his relentless charge ability.

I understand the part about moving along the shortest path to the town hall, but where the heck is this space that he starts from? Did I miss something?

Thanks for your help.