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First off, this is more a dungeon than a city. You do get into random
battles here and you can't purchase anything.

Head to the building that is supposed to be an Inn. There is a clock here
that can have its time set. Set it to 6:10:50. Part of the wall will
slide away revealing a treasure chest. This is a tool for Edgar, the Chain
Saw.

Wander around the various buildings (don't bother with the Relic Shop just
yet) picking up various items. A Tincture and Potion can be found in the
pots of one of them. When you're done, head to the Relic Shop.

Keep climbing up until you get to an area where you can leap between
windows. Don't do it just yet, as if you go up one level you'll get a
Thief Glove. When you have that, go ahead and leap across the buildings.

Continue building hopping from one to another while gradually climbing up.
After some climbing you'll come across a guy in your path. He'll claim
he doesn't want to fight, and start one right up (a good liar, he is not).

when you get the thief glove go back one floor and jump through the window.

just attack them like hell.