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It's been a bit, so have some hints:
A: the 'Rosie' guess followed pretty much the correct logic. The question states that by a longer name, this place would [be a rose]. 'Holly' indicates what the location would probably smell of, rather than anything about its name.
O: The first part is a cryptic clue. 'Normally after a short monster' indicates that this is actually the second half of a place name, the first half being cryptically clued by 'a short monster'. And the 'capital' bit means... well, exactly what it says: this is where the capital stands.
I: As Pervinca guessed, I is the second letter. There are two words to the answer, and 'Hell, Mike reversed into a pit' is the cryptic clue. The straight clue is that the (a) leader can be found there.
hS
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