The former T-Shirts and More building no long exists. New utility connections have been installed, foundation footings have been poured and within the next week or so Prior Lake residents will start seeing the construction beginnings of Chula’s, a new restaurant being built on Colorado Street.

An official ground-breaking was held several weeks ago, and Manny Perez, owner of the new Mexican-Latin restaurant, said the project is proceeding according to plan. He is confident the excitement will continue to grow once framing of the building starts next week.
“We’re so excited about how well things have progressed and how the community has embraced our project,” Perez said. “We’re definitely on track for opening in the spring of 2026.”
Perez is an experienced restaurateur, having been in the food service business for 35 years, most of which has involved owning and operating numerous Subway franchises. His new venture will feature hand-crafted cocktails and scratch-made culinary dishes infused with Mexican and Latin flavors.
“Chula” is a term of endearment in Mexican culture and the restaurant was named in honor of his granddaughter, Sawyer. Other family members — daughter Mercedes and his significant other, Suzie Dahl — are also heavily involved in developing the marketing and interior design plans for the new business.

While most of the building will be dedicated for restaurant use, Perez said approximately 40 percent will be leased as professional office or retail space. The second floor will be finished as a special events center operated by Chula’s and could be used for graduation or retirement parties, wedding showers, and business holiday parties. The space will also be equipped with technical equipment and hardware that could be used by clients booking the space for business gatherings.
“We heard from so many people that there is little meeting space available for use by the public,” Perez said. “We’re super excited we have the ability to provide this for the public.”
You can check here for updates on the restaurant’s progress.