Old Fishery - PCs gave Gaedren 40 minutes to prepare - what would you do?

[LordDamos]

Howdy. Just completed session one of CotCT and I would like some advice on how to proceed. Here's the situation:
* Rogue spent 5 rounds unlocking Yargin's office door. Yargin alerted Gaedren (via the trap door) and alerted Bloo and Giggles.
* Once the party entered the building, they spent 10 rounds fighting Yargin, Bloo, Giggles, and then Hookshanks. Although none of the 4 PCs were slain, the Cleric used Channel Energy four times and cast Cure Light Wounds twice. The Sorcerer used two 1st level spell slots and many Cantrips.
* After combat, the party searched the slain NPCs and distributed the loot.
* The Cleric of Desna PC suggested taking the four orphans in the Upper Workfloor to his shrine in the Pantheon of Many. The other three PCs agreed but they chose to stay at the Fishery. They locked themselves in Yargin's office and waited.
* Once the Cleric returned, session one ended.

Since Gaedren had 40 minutes to prepare, I think I should change the "endgame" from what's listed in the adventure. Listed below are a couple ideas I have for Gaedren's Playground.

1. When the party arrives, the Bloodrager's brother hangs in manacles above Gobblegut's pool, a Gaedren thug holds two other orphans (from the Fishery Floor) above the pool, and Gaedren stands next to the lever that controls the ropes. Gaedren demands the party surrender or the Bloodrager's brother gets eaten while the two orphans drown. Depending on the situation, Gaedren could probably escape in the chaos.
2. A slain Gobblegut floats in his pool and the Bloodrager's brother and Gaedren's thug lay dead along a walkway. An unknown figure in red armor stabs Gaedren through the heart. The assassin throws a creature from a Bag of Tricks at the party and then the assassin jumps in the pool and flees into the water.

Rationales
- For #1, I am "making the party pay" for giving Gaedren 40 minutes to plan an ambush. The scene is a classic "rock and a hard place" or "no good options". No matter how it's resolved, I assume the Rogue and Sorcerer will be upset and the Bloodrager will be furious with the Cleric.
- For #2, I am giving the party a hollow victory. Gaedren is dead but so is the Bloodrager's brother. The Bloodrager will be furious with the Cleric. With this scenario, I am introducing an unknown assassin who easily killed the party's nemesis and then fled without a word. It presents many questions. Who is the assassin? Who hired him/her? Who else wanted Gaedren dead? Why was the party spared?

What are your thoughts and/or advice? I am open to all criticism and feedback. Thanks in advance.

[Many Owls]

It's a pretty tough lesson to give in the first action-packed part of the campaign - the party stood around and waited for too long, and their actions (or lack of actions) had consequences. But sometimes it's a lesson better earned early and quickly.

However, I'd suggest just making the fight more difficult (as you said, someone could be dangling from the manacles, ready to drop into the waters below. Someone has to dive in and wrestle the innocent person from the jaws of Gobblegut before it's too late, while the others have to deal with Gaedren. Could be very intense). An intense standoff and negotiations in a hostage crisis could be a really memorable encounter, and i think your idea number 1 is wonderful (as long as they have a chance to actually still save everyone and be heroes) However, it should make sense for that person to be in manacles and being held captured at that moment ( was the Bloodrager's brother one of Gaedren's Lambs that Gaedren was planning on getting rid of anyways? A hasty hostage he took when he heard trouble was coming?).

Not getting their hands on the first bad-guy boss could feel a tad....empty, even tho the mysterious part of the unknown assassin could make stuff more interesting. Still, i'd be wary of giving out a hollow victory, especially the assassin one. The group might not figure out that this happened because they stood around for too long, and might just say "well okay, he's dead, that's that."

My party was pretty optimized and rather strong for a group of level 1 folks (3 paladins, 1 cleric and a rogue), so i changed the final part anyways, to make it more fun/intense/a challenge. Placed a few barricades on the sides to block passage, Gaedren had a flipped table in front of him for cover, and he had a caster ally. Gaedren also threw a couple of alchemist fires while the group tried to get trough the barricades.
Perhaps some of the stuff i used could be used in your situation as well? Gaedren had a lot of time to prepare: flip a few tables, perhaps craft a hasty trap or two. Also, I'd really suggest he also taunts or comments to the party regarding the time it took them to get to him, just to make the point clear that he was "grateful for the extra time that allowed him to craft a few extra gifts" for his guests, so to speak. He had time to prepare, and now the party will have a harder time.