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The Academy was founded as Castle Heights School in 1902. In 1918, it became a military preparatory school. The school ceased operations in 1986 in the face of declining enrollment. Its buildings have been restored and now serve as the Lebanon City Hall, Lebanon Museum and History Center and the Sigma Pi Fraternity's Headquarters, among other small businesses. Previously undeveloped areas of campus have been subdivided and now feature businesses such as banks and nursing homes. Records and other school memorabilia are maintained by Cumberland University, which is also in Lebanon.