(Sorry for the delay)

Ok, so Orro and Kayassa both follow Halia towards the back room while Duncan stays there in the main room with Glasstaff.

Halia leads you both through the door, and you enter what appears to be a small storage room of sorts. Shelves line the walls, filled floor to ceiling with meticulously sorted rocks, ore, semi-precious metals, gemstones and the sorts. Halia allows you to take this sight in for a few seconds, a proud smirk on her face before getting right back down to business. “So, did you find any correspondence in his quarters of any sort? Anything written or readable?” Halia asks sharply under her breath, still secretive even in this private area. 

What would you like to do?

(Can’t remember - I think we found and obtained papers? If so Orro would hand them over…)

Yep, so you did find this letter:

Lord Albrek,

My spies in Neverwinter tell me that strangers are due to arrive in Phandalin. They could be working for the dwarves. Capture them if you can, kill them if you must, but don’t allow them to upset our plans. See that any dwarven maps in their possession are delivered to me with haste. I’m counting on you, Iarno. Don’t disappoint me.

On top of that, there was the book detailing the legend of Wave Echo Cave, and several assorted books on potion making and alchemy. 

You may choose to share as much of that, or as little, it is up to you. What would you like to do?

Kayassa will give her the bare minimum of what it says, keeping the rest of the information between the group since they had already given Halia what she had wanted. 

Yes, Orro would be on the same page: "there was a letter from the Black Spider, asking after anyone working for the dwarves, ordering them taken out to preserve some kind of plans.... do you know anything about Wave Echo Cave?"

Halia thinks for a moment, then smirking again and gesturing around to the room. “You see this business I run? Of course I’ve heard of Wave Echo Cave, in fact, sometime it seems like it’s all people talk about here at the Exchange. Untold riches this, extreme magical powers that.” She scoffs. “Ah but it’s all just a load of crap; in all my years working here I haven’t heard or seen a single person actually find it. Just an old myth to tell your kids before they go to sleep. Why do you ask?” Halia inquires as she shifts her stance. 

What would you like to do?

“I’m guessing they bought into the old crap myth. Maybe another scheme. Who knows. Well, what do you want to do with this wizard? We can’t babysit him and the powers that be here do not seem like they can handle him. What options do we have?” Orro says.

Halia squints at you for a second Orro, before straightening up and responding. “Well, as you can see, I don’t got much room in here… now I’ll pay you and all— you’ve done the job I asked for, but I’m not so sure about housing the wizard here myself.” She explains. “So, you’ve already gone to the townmaster…” Halia thinks for a moment before throwing up her hands. “Oh I don’t know! Take him to wherever you’re staying? The inn, keep watch overnight? Phandalin just doesn’t have much in the ways of legal matters especially without the townmaster’s backing. Beyond going back to Neverwinter, I don’t see much to do… sorry about it though.” She finishes.

What would you like to do?

"Should we just let him go without any of his stuff? A wizard without a way to use his magic is not going to last long if I am correct." Kayassa suggests as she looks over at him with a small shrug.

"That is little better than mob justice." Duncan says with a frown, cleary disappointed. "He should be made to pay for the damage he is done, but we are no judge or jury, and I am no executioner. I also am not a babysitter though. I cannot believe that Sildar would have no way to deal with this man."

(Ok, so a couple housekeeping things:)

Orro: First, The dwarves you would be most familiar with are the Shield Dwarves. They live primarily in the northern areas of Faerun and are known as renowned artisans in the craft of stones and metals. (If you would like to make a history check, I am willing to tell you more.)

Second, for the manacles I’m gonna say they will cost a total of 5 gold for all the extra additions.

Third, all the things you would’ve ritually identified: 

The potion that appears to have no liquid inside is a potion of invisibility, while the red liquid one is just a regular potion of healing.

The alchemical supplies are not magical, but you would learn that there are three bottles, and they consist of a bottle of mercury, dragon bile, and powdered nightshade.

 Iarno’s staff, you would learn, is a staff of defense.

 Ok, so what’s the plan now? It’s probably around 6PM now in Phandalin. Where do you plan to go? What would you like to do?

Kayassa will move to look over the staff, frowning as they are stuck with the wizard. "We could pay someone to take him back to to bigger city to deal with him."

(Anyone else?)

"Is there anyone here capable of that? Even Sildar seemed unwilling to take charge of the man." Duncan says, frowning as he adds, "I have no desire to escort the man or be his keeper. Yet there seems little choice."

Orro will try to find someone in town who is capable and willing to transport Iarno to the city and if not, he will do himself.

"Well they can gag him and do something to his hands so he can't cast. Otherwise we could take him back to their hideout and through him in one of those cages." Kayassa suggests.

So, the party says their goodbyes with Halia; she hands over the pouch of 100 gold (which you may split up however you please). You exit the Exchange, you see to the relief of many of the people still in line to earn their pay for the day. Halia would request to keep the letter you spoke of, but beyond that is very satisfied with the outcome of the job.

I’m going to assume the party is now going to head back to the inn?

As usual, it is again a short, couple minute walk through the sparsely populated streets of Phandalin to reach Stonehill Inn. It is again bustling with activity: numerous groups of people from all across town gather here to carouse and socialize after a long days work.

It does not take long to find Sildar in and among the people of Phandalin. He greets you with a ruddy smile and a mug of ale— feel free to ask any questions you may have; what would you like to do?

"Sildar, we still have this wizard we need to dispose of. By getting him to a real authority in another town, convincing the local authorities to take him into custody, or finishing him off. I can fashion a kind of manacles that prevents him from casting spells, I think, but it's dangerous, he may have some tricks up his sleeve. There's nothing else we can do about him? No one we can call on to handle him while we search for Gundren?" Orro says, grumpily. 

Sildar’s expression turns from joy, to a thoughtful grimace. “Hm, obviously Harbin did not seem very interested in detaining Iarno here in Phandalin… so the next best option would be Neverwinter.” Sildar then takes a large swig of his ale before continuing. “Now, if you folks are not willing to take him yourself, I’m sure I can find a contact that can take him instead of you. Now, I can’t promise this process will be quick, I’m estimating now around a week, but I think I may be able to convince Harbin to keep Iarno for just a short time like that.”

He nods through another swig at Orro’s manacles. “Mhm, yes that is a good idea. So, what do you think?” Sildar then asks.

What would you like to do?

"But he is a wizard so without his book we won't have to worry to much about him casting more then a few cantrips. Binding his hands and keeping his mouth closed should work for a time." Kayassa says, even as the fey thinks it would perhaps be better to deal with the man in a quicker way at times.