Once you're back in control of Shion, you'll be on the Durandal's bridge, so step onto the elevator platform and descend to the main level. Head to the right, enter the train, and depart for the Dock area. Exit the train and head to the right, then head up the escalator-type things and board the shuttle to the right. Once you arrive at the Kukai Foundation again, head to the left and ascend the stairway to access the map. Go to City Sector 26 and 27. Once you're inside, you'll find the mayor is waiting in the streets. He'll sell you items and also tell you how many people need to be rescued. So right now, you have 13 people to rescue.
Head to the left and encounter the Gnosis in the street. Head up and into the Iron Man bar and talk to the guy posing with the cardboard cutouts. Twelve more people to go. Head back outside and fight the Gnosis again, then head to the left and destroy the purple canister for an edge in the battle with the flying Gnosis you see. Now head up into the Our Treasure hotel. Talk to the man on the floor, then head to the right and go up a little bit. Now go to the left, behind the counter, and open the chest to the left to obtain a swimsuit. Now head back to the right and ascend the stairs. Go to the right and around the boxes in the room, then destroy the shelf you see to obtain some battle gear. Continue to the right and press the glowing red switch in the back of the next room to move the cargo elevator. Head back to the left and destroy the shelf again, then head up the ladder and examine the blue painting to the left to find out the Inn Keeper's daughter was born on the 28th of October. You'll need to know this.
Head to the right and destroy the blue crate to obtain a tech upgrade S. Descend the ladder, head to the left, and go down the stairs. Go all the way to the left to fight a Gnosis blocking a door. Once it's out of the way, enter in the PIN to unlock the door. If you can't figure it out, think about it. The safe belongs to the Inn Keeper. He mentioned something about a picture. Once you unlock it, you rescue the angel that was inside. Eleven people to go.
Head back up the stairs to the right, then ascend the ladder to the right and exit through the door to the southwest to gain access to the roof. Run to the right and keep running as you slide down. You should land on a small ledge. Destroy the panel to reveal segment address no. 1. You should be able to decode it, so head inside and obtain the robot part head. Slide off the roof and onto the catwalk, destroy the junk to the right to obtain an ether upgrade S, then continue to the left and enter the door. Go through the door at the top left, go to the right and up the ladder, then head to the roof again. Now run to the left and head for the little overhang you see to be dumped into, well, the dumpster area. Destroy both dumpsters to find 1,000G in the left one and a person in the right. Talk to him to save him. Ten more left.