Tales, rumors, and other bits of information the party has heard:

Don't go down to the junktoss after dark: goblins steal the trash at night.
Ask Ven Vinder at the general store to see the "wine cellar" and he'll sell you a jug of disgusting but potent orc rotgut.
Murdermaw, a giant red snapper big enough to bite a boat in half, lurks in the Varisian Bay.
Sheriff Hemlock shares a long-running, "secret" romance with Lady Kaye, madam of the town brothel.
The ghost of the murderer Chopper haunts Chopper's Isle, just north of town. Five years ago, the serial murderer killed 25 townspeople of Sandpoint before he was slain.
Nualia, the daughter of the well-regarded Father Tobyn, may not have been killed in the Sandpoint fire five years ago as popularly assumed. She may be the leader of the Thistlepoint goblins, organizing their increasingly aggressive raids on human holdings in the area.
The goblin raid on Sandpoint was solely to distract the townspeople while the remains of Father Tobyn were stolen from the Sandpoint boneyard. These remains were burnt as an offering to Lamashtu, goddess of monsters, at a shrine at the goblin lair of Thistletop.
There have been rumours of smugglers' tunnels under Sandpoint for almost as long as the town has been around. However, rumours of the tunnels mostly disappeared once Lonjiku Kaijitsu took ownership of the Sandpoint Glassworks.
A killing spree is terrorizing the city. Merchants, politicians, moneylenders, and crooked guards are showing up dead every few days. Their bodies are reportedly mutilated, with faces missing and seven-pointed stars carved on their chests. The city guard seems to be nervous, and clueless on how to stop the murders.
A mysterious ship was seen being offloaded into the Shadow - the area under the massive Irespan in Magnimar - and rumors are swirling of a massive shipment of illegal drugs flooding the city.
Many rumors circulate about the mysterious death of Justice Ironbriar, member of the highest court in the city. Some say he was killed in a battle over controlling the illegal drug trade, others that he is merely the latest death in the serial killings terrorizing the city. Still others say he was assassinated to prevent him talking about the illicit activities he was involved in.
A large, bulky figure has been seen around the Shadow Clock over the past few months. Others say they've seen a huge, serpentine shape slithering in and out of the tower.
Reports of enormous wolves stalking the outermost farms around Sandpoint have been circulating. Some say that the unusually early and harsh winter has something to do with their appearance.
The rains have come unusually early this year to Turtleback Ferry and the northern Sanos Forest. This fact, combined with the disappearance of the Black Arrows from Fort Rannick, are making the local residents very nervous.
Some of Korvosa's patrols entering the Cinderlands have disappeared recently.