GOOD G...GG...GGG...GRIEF! That's a shallot? I've only seen the ones at the store, about the size of a garlic bulb.
I don't know of any reason why they shouldn't grow in the same place year after year. Garlic, for instance, is grown as a perinnial, thriving in the same spot.
BTW, how ya doin', Tamara? Been a while.