If you wrap the display dialog in a "tell application" then the dialog will be brought to the front.

Here is my modification of the first couple of lines:

tell application "Finder"
display dialog "URL?" default answer "" buttons {"cancel", "open"} default button 2
set {text returned:theURL, button returned:okay} to result
end tell

if theURL is "" or okay is "cancel" then error number -128 -- cancel

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