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Background
You'll need to do a couple of things to trigger this task. First, you'll need to visit the novelty dicemaker in the
Doomed Commercial Area and ask her about the businesses that have gone bankrupt there. Then you'll need to visit the East Delta Pinball part of the
Whirling-in-Rags and examine the bookcase (#3) and the gutted pinball machine (#4) (in that order) on Level 3. This should cause a Logic orb to appear over your head.
When you click on the Logic orb, you'll realize that the
Whirling-in-Rags used to be the East Delta Pinball arcade, which means the
Whirling-in-Rags is a part of the
Doomed Commercial Area, which means it is doomed as well. You'll decide that Garte should know about this, which will trigger the task.
Walkthrough
When you tell Garte about the East Delta Pinball arcade, he'll seem way more interested in working pinball machines than he will about curses and bankruptcy. He'll also become a little more talkative about the hostel, including divulging how he came up with the name. You'll earn 10 xp for completing the task.
1 - Whirling-in-Rags
2 - Doomed Commercial Area
3 - Shelf
4 - Gutted Pinball Machine