The general feeling you get about the are is that it isn't an area you'd want to be out in during the night with your hand on your dagger. As you look around the pile of debris, you come across a small gold ring with a white gem stone set in it, it still seems like the fire just come poof into existence all at the same time.
You gather from the guards that this is just another patrol, where much doesn't happen and what does happen they get paid to either look into it it or look the way or in some cases they don't care unless it becomes a problem outside of the red light area.