A local enchantment put into play this way does not target the permanent it is placed upon.
If you choose a local enchantment, you can put it on any permanent it can legally enchant. If there is nothing it can legally enchant, it remains removed from the game... and it can still be chosen by you or another player later in the auction. If there comes a point where only local enchantments with no legal permanent are left, they stay removed from the game permanently.
Wie es allerdings mit Equipments aussieht konnte ich nicht herausfinden.
Edit: Phibo ist voll lahm