You can speak to the Mayor while he's in his house to open up construction options. This is also the location of Alvarna's Lost and Found.
Speaking to Byron on the first floor allows you to ask for buildings or expansions.
|+12 floors||5,000 G
Mayor's House 1F
Lost and Found
If you drop a Plot Item, it reappears here.
Mayor's House 2F
This is where the bedrooms are. It is hardly ever occupied.