Get a balloon cat and two "dead worms" from the clown, then take some bread from the stall next to him and head back to Manny's office building. Enter the new room on the lobby level, then use one of your worm balloons on the red hose. Next, use the other worm on the blue hose.
Problem solved. When you get the bread you're carrying it. The door to the building can't be opened if you're still carrying it. If it's put into the actual inventory though the door opens.