Note: You MUST have gloves with you for Kaleb to enchant! To find Kaleb, leave the Shilo bank, head west, over the bridge then east again. He's not in the building with the quest marker, but just northeast of there. He is on the first floor of the building, up the ladder. Alternatively, with 74 agility, you can use the agility shortcut, and climb the ladder on the building north.