Penske Corp. is directing its $5 million Detroit investment promise to Jefferson-Chalmers, an east side neighborhood just across the river from Belle Isle, which is set to host the Chevrolet Detroit Grand Prix next week.

The investment will be used to renovate and add a gym to the closed Lenox Center, according to a news release. The community center is on the Detroit River at Alfred Brush Ford Park.

"I'm amazed by what you have here" in Jefferson-Chalmers, Roger Penske, founder and chairman of the Bloomfield Hills-based transportation giant, said at a media event Wednesday attended by Mayor Mike Duggan and community leaders. "This gave us a real opportunity to show the community that we want to give back."

Part of the $35 million pledged by seven businesses to the Strategic Neighborhood Fund, the Penske money will be administered by Invest Detroit and used to improve parks, streetscapes, commercial corridors and affordable housing. It will also be used to alleviate flooding issues in the neighborhood, a key part of its revitalization framework.

The Lenox Center is about 5,000 square feet and sits in a park at the mouth of the Detroit River. It's been closed for the eight years, but a functional playground is still on site. Detroit's General Services Director Brad Dick said about $3 million of the $5 million Penske grant will go toward fixing up the center. Construction could involve expansion and will likely include a new basketball gym.

Dick said the RFP for the project will be issued in the next couple weeks. Construction is expected to begin in March with completion six months later.

Jefferson-Chalmers, which has plenty of sturdy commercial infrastructure, is one of Duggan's priorities for the Strategic Neighborhood Fund. The area also expects to see a boost by Fiat Chrysler Automobile's plan to invest $2.5 billion at its Jefferson North Assembly Plant and Mack Avenue engine plants. Through the $35.2 million community benefits agreement, approved Tuesday with the rest of the deal, the neighborhood will see demolition of abandoned homes and beautification efforts.

Duggan again hinted at future job creation in the area caused by FCA's project.

"You're gonna see several more projects related to FCA all located, with hundreds of employees each, on this side of town," Duggan said at Wednesday's announcement.

Penske said there no plans now to expand his company's business in light of FCA's plans, but he didn't rule it out. "I think as this whole FCA program continues to grow, we'll look to see if there's opportunities," Penske told Crain's.

Penske championed the annual Grand Prix race, scheduled for May 31-June 2, since resuscitating it in 2007. Penske organizes the race, which his camp claims has a $50 million impact on the local economy each year. Critics have said the race disrupts public access to the park because of a two-month setup and teardown process, and poses a hazard to the environment.

In a deal reached late last year with the Michigan Department of Natural Resources, organizers were given permission to host the event on the public island park through 2021 with an option to extend through 2023. A Penske spokesman said then that the race has led to more than $13.5 million in improvements to the park.