@FortOtt,
I'm pretty sure you can use either italics or quotation marks. This is not a misuse of quotation marks as emphasis; it's more like a direct quote. Use the present tense: Italian still exists and this is the still the translation (that would be true for Latin, as well, which is a so-called "dead language"). The comma after
school is unnecessary, as you correctly surmised.
Frankly, the sentence is a bit of a run-on. It could be rewritten as follows:
Quote:The school was three-stories high and situated at the top of a ridge called Ridgemont. Those were the reasons why the trustees at the time agreed to name the school Alta Vista, Italian for "high view."