Hi Mary........We've talk about this in the past until "the cows came home."
But, we have never been able to nail down, or agree to as a fact, what the trigger is that moves that old guy out of the way. Mag is right about going back to Hori's house and making sure you have accomplished everything there. Jenny is right about Penmenefer also, of course. You might try going back to the Administrator at the entrance to the city and try talking to him again. One more thing you must do is knock on every door in the city and get a response, where someone is behind it to respond.
Love, Witchen =O)