The groundbreaking is planned for the spring or summer of 2019.
Troy parents and residents Dave and Linda Arbogast donated $2 million toward the building of the auditorium.
The school district plans to complete a $5 million dollar fundraising campaign by December 2018.
The auditorium will have a 501(c)3 tax-exempt organization separate from the school district and a separate board of directors to handle operating costs.
Upper Valley Medical Center, operated by Dayton-based Premier Health, gave $1 million toward the arts center.
Upper Valley said in a statement that it provides nearly $15 million in free and reduced-cost care each year, but also “the health of the community is linked to the quality of life that those individuals enjoy.”
“The sponsorship of this new center reflects Premier Health and Upper Valley Medical Center’s ongoing commitment to partnerships that support our mission of building strong, healthy communities,” the hospital stated.