Sheriff's Office: Sidney and pore over the documents they stole from City Hall. There's an escrow statement with Regina's name on it, and Sidney declares it proof. Emma finds blueprints and can't imagine what Regina is building out in the woods. Sidney says it doesn't matter. The bank documentation is Regina's undoing. Emma suffers a conscience attack and blathers that this evidence is fruit of the poisonous tree. No court will accept it, because it was illegally obtained. Sidney points out that they don't need her to go to jail. They just need to prove to the town what Regina is and how she ruins everything everyone loves. He then shows her a file of surveillance photos of Henry and Emma at the castle structure and says Regina was just waiting to destroy their special place until the moment it would most hurt Henry and Emma.
City Council Meeting: Sidney interrupts the Mayor to say he has something to present. Emma backs him up. Regina tries to shut them down, but when Emma accuses her of stealing thousands of dollars to build herself a second home, the townsfolk grumble. Emma presents her "evidence." Regina is smugness itself as she concedes Emma's accusations and then explains she was building a house -- a playhouse -- a new castle-like play structure, for Henry and the children of Storybrooke. "So there you have it, Ms. Swan. You've exposed me for who I really am. I hope you're satisfied." I don't want to take the time or effort to criticize the Show about whether or not Regina did all this behind the back of the City Council. For me, it's easier to accept/assume that she did everything the right way (i.e. got permission from the Council) and then hid the evidence of her due diligence, so that she could set up Emma. Throughout this scene, Gold cringes for Emma. At the climax, Sidney acts properly chagrinned, as if he too has been fooled.
Enchanted Forest, Knifingham Palace, King's Chamber, Night: Genie brings the worst ever CGI viper to a sleeping Leopold's chamber, whispers, "Forgive me," (for that CGI? Nevah!!!!) and then sets the viper loose in the king's bed. The two heads bite both sides of Leopold's neck (as wishes always do). As the king lays dying, Genie confesses he gave the mirror to Queenie, but then blathers about being forever in Leopold's debt, which is pretty fricking meaningless, since the king's forever is set to expire in about three seconds. Genie goes on to say that just as Leopold freed Genie, Genie must free Queenie. The king's dying words hammer home the point which was already pounded out the moment Genie laid eyes on Queenie: "You were right. I never should have made a wish."