Construction of the 24,000-square-foot facility at 2781 East Outer Drive between Ryan and Mound roads will cost $5 million. The project replaces a smaller center that had been demolished about four years ago. It will feature a gymnasium, a work-out room, a conference room and a senior center.

Phase I of the project also includes a 122-space parking lot. The project should be finished by May, city officials say.

The former Owosso Hotel was built in 1928 and closed in 1990, and has since suffered severe deterioration. The groundwater is contaminated, the Michigan Department of Environmental Quality says.

Developers are rebuilding the site into a three or four-story building with ground-floor office space and two to three floors of condominiums or apartments, an investment of about $5 million.

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