Why isnt my code detecting the closest model?

I have a structure that is placed on top of a resource. all of the resource spots are models placed in a folder in the workspace. i look for the closest resource to the placed building to determine which resource the structure is placed on. For some reason though, this code doesnt find the closest resource, and doesnt seem to take location into account whatsoever when deciding which is closest. (returns same resource model no matter where it was placed)

I have heard something about how sometimes cloning unions, meshes, and maybe spheres can corrupt the object's physical properties. i sincerely hope this is not the case.

If there is something wrong with the code i am using, please feel free to reply the problem. any and all input is appreciated.

local function FindClosestCloud(part)
	local items = game.Workspace.Resources:GetChildren()
	local Closest
	local Distance = math.huge
	for i,item in pairs(items) do
		local newDistance = (item.PrimaryPart.Position - part.Position).magnitude
		if newDistance < Distance then
			Closest = item
			Distance = newDistance
			print(item)
		end
	end
	
	return Closest
end

script.Parent.ColorMe.Event:Connect(function()
	local cloud = FindClosestCloud(script.Parent.PrimaryPart)
	print(cloud)
	local team = script.Parent.Team.Value
	local alplr = game.Players:GetChildren()
	local plr
	for i, p in pairs(alplr) do
		if p.Team == team then
			plr = p
		end
	end
	
	
	
	
	if cloud then
		local Resource = cloud.Identity.Value
		while true do wait(1)
			if plr.Inventory:FindFirstChild(Resource) then
				plr.Inventory:FindFirstChild(Resource).Value = plr.Inventory:FindFirstChild(Resource).Value + 5
			end
		end
	end
end)

Image of the hierarchy (sorry for my bad handwriting in the image, i dont believe the snipping tool has a text box option)

If you do not see anything wrong with the script, hierarchy, or otherwise, please feel free to say so as well