As far as I know, and if I'm even reading your question correctly, the choice of the location is up to you. There doesn't appear to be any rules where a memorial may be placed.
SI had one placed by their guildhouse. Others are located within their townships.
In my opinion, it seems a broken system that could be open to abuse. I know that you guys recently lost a guildmate and I am in no way suggesting that. I hope you guys find a suitable location.
EDIT: You should probably ask on the EM website. Seems you're not welcome here.