If CRLX101 can be safely administered in combination with capecitabine and radiation at doses >/= 9 mg/m2 IV in the Phase Ib study, then the trial will proceed to Phase II. Patients in the Phase Ib study with resectable disease and treated at the RP2D will be included in the Phase II study population. The phase II study is designed to evaluate the efficacy of this regimen by assessing the rate of pathological complete response (pCR) while monitoring safety and tolerability.