I don't know if it's lack of context or lack of knowledge on my part, but I can't make out exactly what 作る refers to in this sentence. To me it could be either "the people tales series", or "such stories". However, I would change your translation of "そんな物語りの 臨場感を 大切にして" to:
"..., presence of such stories was highly though of and ..."
そんな物語りの臨場感を大切にして is more likely an adverbial clause modifying 作りました.
Grammatically, the structure of the sentence is not the passive(民話シリーズは作られました), so it's considered that 民話シリーズ is not the subject but the direct object of 作る, and the subject "we" is omitted.
(literally)We published the folklore series caring about the feeling of being there in the stories.
Right. 臨場感 means その場に臨[のぞ]んでいる感じ=まるでその場所にいるような感じ or "the feeling/sense as if being the place", and is often used for music, movie, darama or like that.