Yes, there was a village over there. However, it got "repurposed" for two reasons:
1) The villagers were all dead. They were dead long before I got there.
2) I chose that village location for my iron farm because the village was already dead. I mowed down the village buildings and rebuilt it in the air. Apparently, 2 villages cannot exist within something like a hundred blocks or more, so the farm would not have worked had another village existed in close proximity. Seemed like a good place for my project.
Also, I like beer, so a tavern suits me just fine. Make sure the bar wenches are hawt!