Early exit Women’s hockey team falls short of nationals for the first time in 10 years Sports, page 20
THE The tie that binds Wilfrid Laurier University since 1926 Volume 53, Issue 23
thecord.ca
Wednesday, February 27, 2013
Mel’s comes home News, page 3
WLUSU debt piling up Loans and guarantee from the university combine to exceed $5-million limit JUSTIN SMIRLIES NEWS DIRECTOR
KATE TURNER PHOTOGRAPHY MANAGER
Mel’s Diner returns to old location after devastating 2010 fire great — they were anticipating our return,” Smith continued. It’s been almost three years since Mel’s Diner, along with a number of local businesses located in the Campus Court plaza at 140 University Avenue, went down in flames. The devastating fire was determined to be arson after a police investigation, at the centre of which was a complex arrangement to pay off a drug debt and burn down Tabu nightclub that seemed straight out of a Hollywood blockbuster.
The fire was started when two men threw molotov cocktails into the windows of what was then Tabu Night Club. It eventually spread throughout the plaza. Details later emerged revealing that Brent Campbell — former owner of now-closed Titanium Nightclub in Uptown Waterloo — allegedly hired Daniel Campbell and William Schneider to burn down Tabu to eliminate competition in the bar scene. Daniel Campbell and Schneider pleaded guilty to a number
Tough road ahead
Return of the ‘blah’-scars
Old print, new era
Newly elected Premier Kathleen Wynne faces heavy pushback from Opposition
Visual Director Wade Thompson raises qualms with Sunday’s 85th annual Academy Awards
Features Editor Colleen Connolly looks at how used book stores remain relevant in a digital age
National, page 8
Arts, page 14
Features, page 10
LINDSAY PURCHASE LOCAL AND NATIONAL EDITOR
Mel’s Diner is back in business. The iconic local diner reopened its doors for business at 7 a.m. on Feb. 19 and according to owner Jerry Smith, since then it’s been “packed from open ‘til close” in spite of no advertising. “I didn’t expect a whole lot considering it was reading week … but it was full the first day, as soon as they saw the ‘open’ sign. Which is
Inside
According to the 2012 Wilfrid Laurier University Students’ Union auditor’s report — which compares their financial data from April 30, 2011 to April 30, 2012 — the Students’ Union, without the current liabilities included, owes a debt load of $4,250,156 to the university. WLUSU currently owes the university one loan of $1, 902, 855 while also still owing the university a figure of $2, 347, 301 for a different loan. In addition, the Students’ Union has two external non-revolving long-term loans that total about $2.4 million in 2012, which are secured through a guarantee of $3 million from the university. The report outlines that WLUSU will have to make a payment of $233, 979 for their long-term debt in 2013 — which includes the $1.9 million loan from WLU — and will also make a payment of $118,000 this year towards the other loan from the university, which totals $2.3 million. According to the report, WLUSU was “not in compliance with certain of its lending covenants with the university” as of April 30, 2012 for the loan of around $2.3 million and the university and the union then “reached an agreement to waive the covenant breach.” As a result, the Students’ Union makes annual payments on that particular loan.
“We’re at a point where we don’t have a lot of wiggle room before the cap.”
—Michael Onabolu, WLUSU president and CEO
However, according to Jim Butler, the vice-president of finance at WLU, the loan agreement that the university has with WLUSU has a cap of $5 million. This number includes both money the university loans to the Students’ Union and the $3-million guarantee on outside loans. According to Butler, WLUSU has exceeded that limit. “They are in excess of the $5 million agreement,” Butler confirmed. “We’re working with them to bring it back down…. We’re working with them to help them with their cash flow on that.” 2012-13 WLUSU president and Campus, page 5