there's nothing special to making a cycling town. it's just a normal town that you have that you time travel in to get people to move out quickly. Then you can sell or giveaway the villagers as they leave. that's all it is.
You just move out villagers (to give away to people) and let others move in, like you would in a regular town. The only difference is that you use time travelling to speed up the process and go through more villagers.