Things I have figured out so far:
1. When you rest or sit in the secretary's office in the Garret town hall, there's a thing about waiting your turn to see the Knight.
2. When you get the quest to begin with, the Knight in Solace says that the mayor is reclusive and it can be hard to get her attention.
3. The mayor's door is always closed and locked.
4. If you listen to the Knight in Garret, he tells you a sad story about wanting to adventure again. He also talks about his friend Frank, who is the innkeeper.
5. There is a letter on Knight's desk about his request for training facility funding being denied. The letter recommends improved trading with the gnomes in order to pay for it.
6. There is a theiwar prisoner in the jail who will instantly agro you when you walk in. When he dies, he gives some cryptic sort of "We'll be baaaaaaaaack..... gurgle... die" emote.
These things don't even really sound that related. Budgets, boredom, and evil dwarves.