VOLUME 116, ISSUE 89 diversions | page 4 MUSIC TO MY EYES Minus Sound Research, an art exhibit that exclusively displays the visual art of local musicians, opens atWootini gallery in Carr Mill Mall. win prizes TO ALL UNC STUDENTS: Want to help improve the DTH? Take our survey and be entered to win SSOO worth of prizes. Visit www.dailytarheel. com/survey today. Ljhl, football | online ABOVE REPROACH It's tough to criticize Bruce Carter these days. The four straight blocked punts. The inter ception return for a touchdown. The three tackles for loss. opinion | page 12 QUICK HITS The editorial board is starting anew feature on Thursdays with thumbs up or down or sideways. Check it out and let us know what you think. online | clailytHrheel.com SPECIAL ELECTIONS The Nov. 5 vote will fill six Student Congress seats. LESSONS LEARNED Former gang member is now speaking out against racism. FOOTBALL'S NEW MVP UNC's Bruce Carter earns high marks in game against UConn. this day in history OCT. 9,1991... Forbes names UNC-system president C.D. Spangler one of the 400 wealthiest Americans. The magazine estimated his net worth at $325 million. Today's weather iAfr T-Storms H 77, L 64 Friday’s weather Partly sunny H 81, L 61 index police log 2 calendar 2 nation/world 9 crossword 11 opinion 12 Serving the students and the University community since 1893 01ir Satlu ®ar Mrri Ethics inquiry to focus on funds McClendon: Request wasn’t inflated BY ELISABETH GILBERT STAFF WRITER Student Congress’ ethics inves tigation into Concept of Colors will focus on whether the funding request members presented was justified, not on group treasurer Shaniqua McClendon’s personal integrity. The investigation was announced Tuesday after evi dence surfaced suggesting that McClendon had intentionally inflated the modeling group’s $7,535 funding request for an upcoming fashion show. Ethics committee chairwoman Charissa Lloyd said she hopes to vifl it VuH W VtiW. ' tJ * * *“ltf ** j I -.jhhL.AM liriii •** fJBnj Wj * A i\w- JHBf iB HH DTH FI LE/ADAMGRAEtTTB "Spirit of Uganda," a show using dance to raise HIV/AIDS awareness, came to Memorial Hall in April as part of ■ Carolina Performing Arts' season. CPA has grown through membership in the Major University Presenters consortium. ~ I ARTS SERIES SHINES IN PRESTIGIOUS COMPANY Carolina Performing Arts fl Formed: 2005 Leader: Emil J. Kang, Executive Director for the Arts Staff size: 22 Main venue: ► Memorial Hall: capacity 1,434 ► Kang said CPA is also looking into the potential future use of Gerrard Hall and Playmakers Theatre. Approximate total ticket sales: ► 2006-07:36,000 ► 2007-08:40,000 Percentage of tickets sold to students: ► 2006-07:32 percent ► 2007-08:35 percent The St Petersburg Philharmonic performs at Memonal Hall few seasons Money for local construction projects is tight BY ANDREW HARTNETT AND ANDY KENNEY STAFF WRITERS Economic woes could postpone development of 300 E. Main St. and affect other developers’ proj ects in Chapel Hill and Carrboro. Laura Van Sant, of Main Street Properties, said the SSO million project, which was approved last week, could have trouble obtaining credit to finance construction. “It is very challenging right now to get any credit for commercial projects,” Van Sant said. “We’ll see how that plays out and whether it will be a problem for a few days or weeks or whether it will drag on for a long time.” Stephen Cumbie, executive director of the Center for Real Estate Development at UNC’s www.dallytarheel.coin hold the investigation within the next week. This is the first ethics investigation in about two years. McClendon and the other Concept of Colors officers will meet with the ethics committee to audit the request. “This group obviously is going to be looked at as innocent until proven guilty,” Congress Speaker Tim Nichols said. The controversy began when students in McClendon’s business class reported to Congress that she told the class that she had embel lished the budget numbers. McClendon’s classmates said she talked about inflating the num- BY BENNETT CAMPBELL SENIOR WRITER % When Carolina Performing Arts was invited to join the Major University Presenters consortium last December, people noticed. That’s mainly because CPA is in its infancy compared to other mem bers of the consortium —a loose but highly selective group of the nation’s top performing arts presenters. CPA’s four years of existence are dwarfed, for example, by the 130-year history of the University of Michigan’s University Musical Society, another member of MUPs, as the consortium is referred to. Some credit CPA’s member ship in MUPs to the meteoric rise in prominence and substance the series has seen. The benefits of that membership, they say, will only fur ther aid the series’ prominence. Support from up top Aaron Greenwald, director of Duke Performances, the performing arts series right down Tobacco Road, said although Duke is not a member of MUPs, he understands what the collective values most “There is a real deep buy-in from senior levels of the schools’ administration, whether it’s from the chancellor or provost or presi dent,” Greenwald said. “It’s not just ‘Of course we want a performing arts program,’ but like, ‘l’m going to go to the meetings and figure out how we integrate this into our campus.’” Emil Kang, director of CPA and UNC’s executive director for the Kenan-Flagler Business School, said the financial crisis is affecting developers across the board. “This looks like it’s turning into a classic credit crisis, but of much greater proportion than in the last 50 years,” Cumbie said. Cumbie said that the residen tial housing market has been in a slump for years, and in recent months commercial real estate markets have followed suit Developers’ loan and credit troubles are making it increasingly difficult to finance new commercial projects, such as office buildings and shopping centers. “Debt financing has really become nonexistent for new proj ects other than the absolutely strongest borrowers, and even then it’s very difficult,” Cumbie said. bers she presented tp the Congress finance committee on Sept. 30 so the group could still get all it need ed even if its budget got slashed. McClendon said she tailored the details of the story on the spot as part of a class assignment but did not lie either to Congress or to her class. Officials said rumors of stu dent groups inflating their fund ing requests, which are paid for by student fees, are not new. But this case is the first in which stu dents have brought evidence to Congress. “We never caught anyone ‘red handed,’ and that’s what the ethics investigation is looking into with this group,” Nichols said. He added that he thinks the arts, came to UNC while former Chancellor James Moeser was in office. While CPA doesn’t turn a profit it actually ran a more than $2.7 million deficit last year due at least in part to subsidized student tickets Kang said CPA is in its current state due in part to Moeser’s support, financial and otherwise. “We generated over $lO million in the past few years while Moeser was in office,” Kang said, noting that the Kenan Charitable Thist was respon sible for $5 million of that total. “Everyone there knew that a healthy endowment was going to be key to our artistic freedom.” Kang said new Chancellor Holden Thorp appears to have a similar appreciation for the arts on campus. The art of collaboration While administrative support has been responsible for lifting CPA to a status deemed worthy of invitation into MUPs, once a pro gram attains such a status, the pro cess becomes self-perpetuating. Ken Fischer, president of University Musical Society at Michigan, said the biggest benefit of membership is the potential for collaboration with other member universities. “It has become a very impor tant network, not just for the chief executive officers, but for our mar keting staffs, for our development and fundraising staffs, for our pro duction people, for our education SEE ARTS, PAGE 9 “We’re going to be stuck in this cycle for a while.” Downturns in the economy also are making prospective tenants more cautious, reducing demand and straining developers. “In order to build, we need to have preleasing or some sort of pre-commitments from tenants or future tenants,” said Mark Moshier, a senior vice president at Grubb & Ellis/Thomas Linderman Graham, which manages University Square. “People are being more conser vative, being slower to make up their mind,” he said. A lack of preleases by tenants makes it more difficult to secure financing for large projects, espe cially as lenders demand more pre leases for each project. investigation will deter other group leaders who might be seeking to pad their funding requests unnec essarily. Congress representative Michael Betts also is drafting a bill to create a legislative audit budget board to prevent similar occurrences in the future. Nichols said the board would conduct an annual review to make sure groups had spent the money they received from Congress for the purpose defined in their requests. Funding use deemed inappro priate would lead to sanctions on future funding for the group in question. “This is just going to make sure the money is being spent the way it was authorized to be spent,” Betts Duke Performances Formed: 2005 Leader: Aaron Greenwald, director Staff size: 6 Main venues: ► Page Auditorium: capacity 1,232 ► Reynolds industries Theater: capacity 643 ► Nelson Music Room: capacity 300 Approximate total ticket sales: ► 2006-07:20,000 ► 2007-08:32,000 Percentage of tickets sold to students: ► 2006-07:18 percent ► 2007-08:24 percent Composer Jason Moran's mul timedia project "In My Mind: Monk at Town Hall, 1959* came to Duke last year. Duke Performances commissioned the work, which was part of a more thesis-driven series that the organization is known for. In some cases, a lender might ask that 50 percent of a project be preleased when before he would have only demanded that 33 per cent be filled, Mosier said. Federal interventions, such as the bailout bill passed Friday, could ease the long-term impact of the crisis. “The market will find a floor eventually, but without federal action it will presumably be a much lower floor,” Cumbie said. “Even as the markets start to heal and open back up, only the most creditworthy projects and most creditworthy borrowers will be able to borrow for a while.” Adam Klein, vice president of economic development and government relations for the Chapel Hfll-Carrboro Chamber of THURSDAY, OCTOBER 9, 2008 said. Betts said he hopes to gain support and feedback for the bill and to introduce it at the next full Congress meeting in two weeks. Lloyd said Concept of Colors’ request likely will have to be resub mitted to the finance committee, followed by full Congress, after the investigation concludes. McClendon said the request will not be changed, though group members said lesser-quality, less expensive items could have been requested. “There’s no need to change it,” McClendon said. “It wasn’t inflated in any way.” Contact the University Editor at udesk@unc.edu. Some: raises still not enough UNC increased minimum salaries BY MEERA JAGANNATHAN STAFF WRITER Monday’s minimum sal ary increase was a positive step, employee leaders said. But some feel it was not enough, and administrators said financial constraints could hinder future increases. The University raised the minimum annual salary for full time employees by $4,888, to $25,000, on Monday. The total amount used in the wage i;aise was $144,000. Tommy Griffin, chairman of the Employee Borum, said he thought the salary raise was a step in the right direction. “I’m just glad the chancellor found some money to help folks out,” he said. Griffin also said there remains a significant disparity between the average employee wage on campus, which he estimated to be about $35,000, and the cost of liv ing in Orange County. “I’ll be honest with you, a liv ing wage is a little bit more than $42,000,” Griffin said. “At today’s prices, that’s what everybody needs to make.” Brenda Malone, associate vice chancellor for human resources, said the concept of living wage did not play a role in calculating the increase. Dick Mann, vice chancel lor for finance and administration, said he disagreed with Griffin’s estimate. “A $42,000 living wage? That’s nonsense,” Mann said. “My sense is that the state’s minimum is well below what we’re setting as a floor. I don’t know where they got their number. We operate in relation to what the state numbers are.” The increase for UNC employees came mostly from a pool of money called the pay improvement fund. The fund was set aside several years ago to deal specifically with SEE WAGES, PAGE 9 Commerce, said the credit crunch is affecting many other local busi nesses as well. “I think where people are being affected most is they’re not able to get loans,” Klein said, adding that retailers and restaurants have been among those particularly damaged by the crisis. “They need to get a credit line to purchase new goods and materials, which is typically not a problem, but now people are not able to get access to those loans as they have before.” As part of the 300 E. Main St. project, the Arts Center will be expanded, but Executive Director Jon Wilner said the crisis will likely not affect construction of his facility. SEE ECONOMY, PAGE 9

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