Just go and tell the manager to return the deposit or you are going to blow this case wide-open to every media (traditional and online) once you file complain with the police and file this case in small claim court. Whether or not they still want to save their reputation while they still can, it's up to them.
As many have mentioned, deposit is fully refundable by law. Well, at least there are quite a bit of steps required by law to be non-refundable. Even if you sign another piece of paper, it does not mean such a contract can go beyond the law. The basis of contract law is that any terms that are deemed illegal cannot be enforced.
On court, they would have to prove the damage you caused to them and how such if they were not listed in the contract and explained to you fully.
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