This is the 441st most frequent Czech word.
nachází
"Nachází" means "is located" or "finds" in English, depending on context.
In this sentence, 'nachází' is used to indicate the location of an entity (the city) in relation to another entity (the river).
Město se nachází u řeky.
The city is located by the river.
Here, 'nachází' expresses the existence or occurrence of something (a solution) within a specific context (the complicated situation).
Ve složité situaci se nachází řešení.
The solution is found in the complicated situation.
In this usage, 'nachází' implies habitual or repeated occurrence of being at a location (the same spot) during a particular time (every morning).