Al-Adryan (or Al-Adrian ?) is the one that puts you on the initiation path. After comleting it (and getting the three items) you will want to open the gate "above" him .... if he doesn't give you what you need, I think it is right by the gate.I say "above" ... because that is a matter of perspective ... if you come up the stairs take a left, another left at the corner, then go past where you turn to Al-Adryan's, it is the next right.
I believe the item you need is the (highlight the rest of this line for the answer): Initiate Badge
Tools for Wizardry(r) 7