The database.sql is the correct script. Can you open it with a text editor and check that it contains these lines?
CREATE DATABASE /*!32312 IF NOT EXISTS*/ `citadel` /*!40100 DEFAULT CHARACTER SET utf8 */;
I've tried the same process as you for events-template and for the other ones and my new database was created normally in phpmyadmin
*EDIT: Please check that you have the latest version of the template and guides downloaded. There were some inconsistencies in the packages available here in the Hub and in github