The Penguin's a Jinx (2) - S1-E4
Other mistake: Penguin is able to follow from his office the unconscious Bruce Wayne on the conveyor belt. Considering the angle and how it keeps perfect close-ups of the moving target, it would mean he has a security camera in the back of his shop that is pointed on the conveyor belt and is mounted on a dolly (and he is not doing anything to control it). Definitely wins him Evil Overlord points. (00:02:40)
The Penguin's a Jinx (2) - S1-E4
Other mistake: Penguin says that his sleeping gas' effect lasts 18 hours, but Bruce in his shop woke after mere minutes (sure, the extreme temperature helped him regain consciousness, but something as potent to knock you out for 18 hours with a small whiff can't completely lose effectiveness just because your feet are getting a little hot). (00:20:15)
The Penguin's a Jinx (2) - S1-E4
Other mistake: In the pre-credits recap of part 1 of the episode we see Bruce awake and staring in horror (with actually a super hilarious face) at the furnace. It was not part of the previous episode at all and in fact Bruce wakes up only in this second episode.
Answer: There wasn't one singular city used. It was shot in and around various locations in California, plus on a lot of sets and backlots. Ex. Some scenes were shot in LA, some in Pasadena, some in Santa Barbara, etc.
TedStixon