Latino Museum-in-Progress Loses Chief : Culture: The board is expected to announce a replacement soon and to pick a site for a home.

The nascent Latino Museum of History, Art and Culture, on the verge of locating a site after nearly three years of planning, has lost one of its mainstays--its president and executive director.

Frank H. Cruz, the former KNBC-TV anchorman who took over the post in February, 1991, left the museum last week after being named chairman of the board of the new Gulf Atlantic Life Insurance Co.

Cruz, who had left a position as general manager of Spanish-language station KVEA Channel 52 in 1989 in hopes of establishing a Latino-owned life insurance company, joined the Latino Museum when financing for that endeavor failed. He could not be reached for comment this week, but Antonia Hernandez, the museum’s board chairwoman, said the insurance business “had been a dream of Frank’s for many, many years and we understood that. We just didn’t think it would happen quite so quickly.”

Hernandez said that the museum’s board has moved quickly since Cruz’s departure and will meet Monday evening to schedule interviews of candidates to replace him. The candidates will be culled from a list compiled during the nationwide search conducted before Cruz was selected. Hernandez, who is president of the Mexican American Legal Defense and Educational Fund, added that Cruz will continue to be involved with the museum’s planning activities.

Meanwhile, the board hopes Monday will be the day it also moves closer to selecting the museum’s permanent home--and possibly a separate temporary site.

The museum had announced in September that it hoped to purchase the landmark Lawry’s California Center for its permanent location, but its bid was rejected for being “substantially below” the asking price. Hernandez said the museum then launched a $30-million fund-raising drive specifically to cover costs of buying the $18.5-million site, renovating it and starting up the museum, but then “just kind of backed up and began to look at other sites” when Disney Studios also showed interest in the Lawry’s property.

Now, with Disney no longer bidding, Lawry’s is once again being considered for a future Latino Museum home--but along with four other locations including sites near Olvera Street and Union Station.

Hernandez said the board will narrow that selection to no more than two sites--and possibly select a final site--during Monday’s meeting. It also plans to decide whether a temporary home should be sought elsewhere, or whether the museum should move into its permanent home right away and remain there throughout any renovations or construction.

“Our ability to make a credible (fund-raising) presentation is based on our selection of a definite site, so . . . the board will continue making any decisions (in the absence of an executive director) because we’re that close,” Hernandez said. “It probably won’t be the spring or early summer (the opening date that had previously been targeted for the new museum), but we’re going to have (at least) a temporary site . . . and programs this year.” The Latino Museum was founded in 1989 when the California Legislature voted to grant it $300,000 in seed money. Its stated mission is “to celebrate the heritage of Latinos and to promote the continuing development of Latino artistic and cultural expression in America.”