War truly began to brew as Falcone and Maroni both attempt to sway the vote for Arkham Asylum and the land surrounding it. Falcone wants it to become a waste disposal site, Maroni wants it to become low income housing, while The Waynes envisioned reopening the asylum to service Gotham’s mentally ill. Both criminal parties hire a hit man to take out various city council members that will influence the vote in their favor. The hit man, Richard Gladwell, murders his victims with a metal spike of his own design. His first victims are a council man and his aide, both men stabbed through the eye socket! Jim and Bullock are given the case by Captain Essen, who believes it to be a case of “being in the wrong place, at the wrong time.” However, Jim has his own troubles to deal with as Oswald shows up at his apartment. Jim plays him off as a work friend to Barbara and walks him out. In the street he angrily confronts Oswald for returning to Gotham. Oswald, however, pleads with him to allow him to help him avert a gang war that will soon embroil the city by going undercover as an informant. 

Jim believes the council man’s death is more than a random incident, but is instead politically motivated. He learns of the upcoming vote concerning Arkham and pays Vruce and Alfred a visit. There, from Alfred, he learns of the Waynes philanthropic vision for Arkham Asylum as a state of the art facility for the mentally ill.  Gladwell captures another council man in a metal barrel and then, covers him in lighter fluid, and then burns him to death! Captain Essen and Bullock believe Jim’s theory concerning the crimes. An imprisoned informant tells them about Gladwell and his special techniques for murdering his victims, he even reveals his location. The detectives find that Richard Gladwell has actually been dead for five years, finding his corpse in the apartment. Apparently the hit man had stolen his identity! Meanwhile, Fish has been auditioning girls to do an unspecified job for her. They must be able to sing and seduce her. Her hopes are answered when she meets Liza who can sing and then seduces her with a kiss. Harvey arrives in need of information from her. He promises to owe her a favor in return, but needs to find Richard Gladwell. Elsewhere, Barbara asks Jim who is Oswald Cobblepot. He realizes Renee has given her more information. Barbara reveals she and Renee were once lovers and apologizes for keeping their past relationship a secret from him.

Oswald survives an armed robbery of Maroni’s restaurant. However, the manager does not. He manages to keep safe by hiding in a refrigerator and salvaging some of Maroni’s money. Maroni believes Falcone is responsible for the attack. Oswald is rewarded for it with a promotion to restaurant manager and given money for a proper suit. Jim and Harvey manage to track Gladwell to his day job, but he eludes capture. However, he leaves behind a clue to his next victim will be. Jim deduces it will be the mayor and goes to protect him. He arrives in time to warn the mayor and tries to get him to safety. Gladwell surprises them and tries to stab Jim, causing him to drop his gun. He takes the gun and chases them through the mayor’s home and prepares to finish Jim until Harvey arrives and threatens to shoot him. He relents and seems ready to surrender until he tries to attack the mayor. Jim reclaims his gun and both men gun him down! Elsewhere, Fish makes Liza fight for her new job. Naturally she wins and impresses Fish even more. Later, Barbara comes to see Jim at the precinct and apologizes to him again. She asks about Oswald again, but Jim refuses to answer and tells her revealing his work is something he will not do again. She tells him she will  not live with secrets and leaves. Oswald proves to be even more dangerous and devious as it is revealed he set up the robbery. He ties up loose ends by killing his henchmen with poison canolis and taking the money for himself. The mayor makes a decision concerning Gotham that will profit Falcone, Maroni, and The Waynes’ memory. Everyone gets what they want, much to Bruce’s chagrin. Jim tells him Gotham is at least worth trying to save. Maroni and his men celebrate their victory against Falcone, while Fish ices Liza’s busted lip and prepares her to take down Falcone.

Next week—> Oswald tells Maroni he use to work for Fish Mooney, Maroni questions Oswald and Jim