It will focus on the stories of heroism behind the Medal of Honor, which is the highest award for valor in actions against an enemy force.
A committee spent the last six months looking at 12 different locations before agreeing on the space.
It's the same space where the Chattanooga History Center was going to go before plans fell through.
Lt. General Charles Coolidge, Jr. who is the son of Medal of Honor recipient Charles H. Coolidge, says the location is a no-brainer and a better fit for the community with more than 900,000 people passing through Aquarium Plaza every year.
"This turned out to be, I think, a better solution. My father feels that way. He feels that communities come together as a result of this and tackle what was a tough issue. And he believes this is much better and we get tremendous support out of this," Coolidge said.
The center is slated to be open in 2020.
Before that can happen, $6 million need to be raised to finish the space.
Organizers need $1 million of that raised by the end of this year.
They're hoping to do that a couple different ways, one of those is offering lifetime memberships to veterans and their families for $500.