Looks like City Tavern is not just remodeling. They're closing for good. No news as to what will come for that space.
I, for one, am sad to see it go, but I have to admit that I only ate there a few times and found it to be a little overpriced (if I'm going to pay in that price range, I prefer Kurah). Nonetheless, it was a good option for the neighborhood and a good place to bring visitors to the South Loop.
It's unfortunate. I feel like that space just isn't functional for some reason. I personally didn't care for the food, under either of the chefs... They seemed to usually have a decent crowd. I hope something can come in and be successful.