In the center of the City Square you see a large statue made of white marble. It seems to represent a Warrior of Discord on a heap of dead enemies.
A construction gnome is busy polishing it while trying to keep the pigeons away.
The gnome is here primarily to give players information about the founder of Heroes of Ardania - Talespinner the Mildly Insane. After all, it's his statue the gnome is polishing... Apparantly, the gnome is not very happy with his current assignment and takes it out - verbally - on the unsuspecting heroes who come to pay their respect to the great Talespinner.
The gnome also plays a part in the Longsword of True Valour Quest