The party tracked the wizard to a warehouse where he was defended by an able fighter bodyguard. The fighter fell to a sleep spell (and was later looted of all but his armor before being beaten into unconsciousness). Argus left him with two gems, enough to pick up some mundane replacements for his sword and shield and get back on his feet.
The wizard fell to the flurry of blows from the wandering monk, Argus, but before the party could secure him, some spell with a contingency, triggered from a magical ring, made the unconscious wizard vanish, presumably teleported to a safe location. Curses, another dead end! And so close!
After inspecting an escape path - a sewer line that ran out to the lake outside the city walls, the party now rests and bathes in a local bath house. Though they can speak to each other, each tub is surrounded by a privacy screen. Ah, to rid oneself of sewage stench...