San Antonio Business Journal  

                                    September 21, 1990

SECTION: Vol 4; No 36; Sec 1; pg 5

LENGTH: 732 words

HEADLINE: Control Data Corp. Goes to Court to Dissolve Partnership With 
Omni

BYLINE: Tony Cantu

DATELINE: San Antonio; TX; US

 BODY:    Downtown's Control Data Business and Technology Center, the 
city's only "incubator" of small businesses, now lies at the center of a 
legal battle between the partners who own the project.

   One of the owners of the center, Control Data Corp., wants to dissolve 
its partnership with the embattled Omni Enterprises.

   Control Data contends the successful business center is being hurt by 
the troubles plaguing Omni, whose principals include two local indicted 
developers. As a result, the company has filed a lawsuit in an attempt to 
sever its ties with its partner.

   The dispute over the center at 301 S. Frio St. is linked to the 
history of the failed Vista Verde project, an undeveloped 120-acre site 
in economically depressed Vista Verde South. The Vista Verde project has 
suffered a long history of financial problems stemming from the fiscal 
woes of some of its participants, including the Omni partners and 
California developer H. Frank Dominguez.

   But the Control Data Business and Technology Center has blossomed into 
the area's only viable property. The four-story, 94,000-square-foot 
building now houses a number of small businesses that keep it more than 
90 percent occupied.

   Omni still retains part ownership in the incubator, according to legal 
documents. And Control Data officials allege in their lawsuit that Omni's 
financial hassles are causing a deterioration of the center.

   Control Data also contends in its lawsuit that financial problems have 
rendered Omni unable to make contributions it originally agreed to pay. 
As a result, Control Data alleges it was forced to lend some of its own 
money to the partnership.

   Control Data's lawsuit seeks to dissolve the partnership under the  
Texas Uniform Partnership Act. The company's also asking for an 
unspecified amount of damages.

   Efforts to reach the attorneys involved in the suit were unsuccessful. 
A spokeswoman for Control Data declined comment.


                                                                       
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Courier               

   The lawsuit was served through Immer Vista Verde Inc., a partnership 
forced into involuntary Chapter 11 reorganization here December 1988.

   Among the embattled principals of Omni and Immer Vista Verde is 
California developer H. Frank Dominguez, who came under fire in 
bankruptcy court last year. A 159-page examiner's report compiled at the 
behest of a federal bankruptcy judge accused Dominguez of "dishonesty and 
gross mismanagement." Dominguez and his firm, Vanir Group Cos. Inc., also 
were forced into Chapter 11 reorganization in California bankruptcy court 
in the wake of foreclosure threats and lender lawsuits.

   Last April, an agreement with Dominguez freed most of the city-owned 
Vista Verde land from his control. However, he still retains a part 
ownership in the business incubator that's prompted the Control Data 
lawsuit.

   Omni's other two developers,  David Saks  and Doyle Spruill, also are 
embroiled in litigation stemming from the ill-fated Vista Verde project.

   The problems that led to the current partnership battle date back to 
1978, when Dominguez won the contract for developing Vista Verde South 
with a $ 19 million federal grant.

   Six years after the contract was awarded, former Mayor Henry Cisneros 
and other city officials recruited Omni Interests into the deal. Omni, 
led by Saks and Spruill, bought a half interest in the development.

   Saks and Spruill borrowed $ 11.5 million from the insolvent Commerce 
Savings Association to build the Fiesta Plaza Mall, which was supposed to 
be the centerpiece of the development. But shortly after the mall's 
opening in 1985, Omni ran out of money and stopped making loan payments. 
Earlier this year, it was posted for foreclosure. Today, the pink stucco 
mall sits vacant. And the surrounding acreage also is languishing, 
virtually undeveloped.

   Saks and Spruill were indicted last month in an unrelated $ 19 million 
savings and loan fraud case in Texarkana.

   Control Data's court move to divorce itself from Omni is the second 
lawsuit centering on the business and technology center. Last November, 
Control Data officials filed a lawsuit against the Bexar Appraisal 
District alleging that the 1989 assessment of the structure was $ 4 
million too high. Control Data protested the Bexar Appraisal District's $ 
4.98 million assessment. The company succeeded in knocking the assessment 
down to $ 4.47 million, but it still claimed the building was worth only 
$ 1.42 million. That lawsuit is still pending.

SUBJECT: Business incubators; Partnerships; Litigation; Southwest

GEOGRAPHIC: Southwest Region; San Antonio; TX; US

COMPANY: Control Data Corp; DUNS: 00-625-5996; SIC: 3679;7374;6146;3579; 
TICKER: CDA Omni Enterprises; SIC: 6552

CO:  CERIDIAN CORP; 


                                                                       
PAGE   10               San Antonio Business Journal  1990 UMI/Data 
Courier               

TS:  CEN (NYSE); 

IND:  071 COMPUTERS;