The official plans for HMCS Hunter are now in place for the new building on Windsor's West side.
Defence Minister Peter McKay was in Windsor on Thursday to announce the $15.7 million contract to build the navy's new local home.
McKay said PCR Contractors will do the work, which is expected to create 85 jobs.
"It allows us ... better training; more effective training," said McKay. "I suspect that it will also, in addition to the obvious commercial contributions that it makes to the economy, be a source of pride."
The new HMCS Hunter headquarters will be on the Detroit River at the old Mill Cove Marina, which closed in 2003.
The facility will be able to house 250 personnel.
He said the government has spent a long time planning in an effort to get to this stage.
"This is a demonstrable way in which the government recognizes the value that Canadian Forces bring to our communities," said McKay. "Giving them proper, modern and thoroughly adequate facilities in which they are able to prepare themselves for the inevitable, for any task that may arise."
The building will feature a drill deck, classrooms, a boat lift and boat shed.
HMCS Hunter is currently located at 960 Ouellette Ave. It was originally a grocery store. Ottawa commissioned the building in 1941 during the Second World War.