(Above) Rendering of Cantina Laredo, a Mexican restaurant being built at the northwest corner of State & Illinois in River North. It was designed by Weiss Architects of Chicago. The general contractor is International Contractors, Inc., of Elmhurst, Illinois.

December 29, 2010 – Construction has started in the 500 block of North State Street of an upscale Mexican restaurant due to open next year. Cantina Laredo will open around September 5, according to Bill Watson, Vice President of marketing for Consolidated Restaurant Operations, Inc., the Dallas company that will own and operate the restaurant.

Cantina Laredo is a franchise with more than 30 locations in the U.S., one location in London, and one in United Arab Emirates.

In February 2010, Crain’s reported the restaurant had signed a lease with Chicago developer Joseph Beale, who with investors purchased the location, a former parking lot near the intersection of North State Street and East Illinois Street, for $5.7 million in 2006.

AnchorBank, a bank in Madison, Wisconsin, that loaned him money to buy the vacant lot was at one time suing Beale. A foreclosure suit filed January 26 in Cook County Circuit Court claimed the bank was owed nearly $7 million to cover the original mortgage, interest and late fees, and sought possession for a foreclosure sale. According to court records, the lawsuit was dismissed voluntarily on December 8.

While the law firm that represented AnchorBank could not be reached for an update, the property appears to have been taken over by the Wisconsin bank. Watson says the restaurant’s lease is with ADPC Corporation, and according to AnchorBank’s 2010 annual report, ADPC Corporation is a subsidiary of AnchorBank. It holds and develops some of the bank’s foreclosed properties.

Two previous deals to develop the lot – a boutique hotel and a John Barleycorn bar/restaurant – fell through.

According to its website, Cantina Laredo “serves authentic Mexican dishes in a sophisticated atmosphere. We offer daily fish specials, grilled chicken and steaks complimented by signature sauces such as chipotle-wine with Portobello mushrooms or sautéed artichoke hearts and roasted red bell peppers.”

The restaurant, across the street from Hotel Palomar and behind Rock Bottom, will have a 12,300 square foot first floor with outdoor patio, and a 6,100 square foot second floor with rooftop deck. Both floors will have a full service kitchen and bar. A 38-foot tall fireplace will rise from the outdoor patio.

Construction of the Mexican restaurant, which started in November, will continue through winter.