Heldafer was originally an ancient fort founded by the Healdar knights as an outpost on the Western frontier of Kinmonia. The fort was constructed to hold at bay the dragons who originally roamed the frontier until they were slowly exterminated and pushed into cavernous retreat by the knights. The fort's walls still stand in the midst of the town square, the city growing out around it.
This area has a number of points of interest and generous use of placeables.
Sounds like a faction issue. The Narrator is set to the DMFI faction which if you're not using DMFI you might not have. You can solve the problem you're describing in one of two ways. You can either modify the Narrator NPC and set him to a faction of your choice or you can remove the NPC altogether.