Hi Shay,
We are using Civil  Location Information Format rather than Geospatial  Location Information Format.
Looking into captures I done here, the location is being provided based on AP's location.
See configured location for AP

See results seen in RADIUS-Request for 
Location-Data

And 
Location-Information

You can find little more explanation under IETF RFC5580 
here and 
here 
Please find also some an old but gold guide for specific 
RADIUS attributes under WiNG system.
More documents can be found under 
this portal link
Regards,
Ondrej