I'm not sure what effect your mods have on the game, but settling a luxury tile will do the following:
Instantly clears the tile of Forest/Jungle/Marsh
Instantly connects the resource to your civ (as soon as you have the tech required to harvest said resource)
That being said, you will not receive any additional bonuses for working the resource tile. Later in game with tech advances you will not receive bonuses to mines, plantations, etc. because your city is on it, not mine, plantation, pasture, wheat farm.... If you have no other grainery or stable resources in the area; then settling on deer, wheat, cow, etc. can work out well. I would avoid settling on a mining or plantation resource when possible because bonuses come from tech, not from possibly pointless buildings.