You are using the LinqToSql provider, which does not have support for the SqlGeography type. Try using the Entity Framework provider.
Here is how I reference a database that uses SqlGeography in one of my projects:
type internal Database = SqlEntityConnection<ConnectionStringName="DefaultConnection", LocalSchemaFile="Context.ssdl", ConfigFile="Web.config", ForceUpdate=true, Pluralize=true>
For most purposes the LinqToSql, and Entity Framework providers are very similar. The main difference is that the Entity Framework provider exposes types as internal, while LinqToSql makes things public.
If for some reason you would rather stay with LinqToSql, there are some work-arounds that might allow you to do what you want.