The Grundy County Commission has proposed a business investment paired with the State of Tennessee, to fund the addition of the Monteagle Boutique Hotel. In the most recent Grundy County Commission meeting, held on August 24, 2026, Mayor Michael Brady and partners with the State of Tennessee presented the project to renovate what used to be the DuBose Conference Center into a hotel resort in Monteagle.

With the introduction of Resolution 26-8-24A, it regards the establishment of a commercial development district. Michael Brady explains, “What it says is that you can encompass a commercial business that they satisfy certain requirements.”

A handout was passed out at the meeting and explained that with this commercial district, the county establishes a Commercial Development District (CDD) for the project. The CDD needs to be approved by the State.

Then, the hotel developer needs to secure a traditional debt finance or loan. It is stressed that the portion of costs for infrastructure and other eligible finances that is reimbursed with loans will all be upon the State of Tennessee.

“At no time does Grundy County assume any debt or is responsible for repayment- it is all on the developer and the State.”

Michael Brady went into detail about how the loan process will work, “So, what it is, is a portion of the 7% sales tax, they can get an indebtedness because they’re investing a lot of money in infrastructure. And it’s kind of like a Tax Increment Financing (TIF) but just a little bit different.”

A CDD does not use any tax revenue that the County has collected or is currently bringing in meaning that no Grundy County tax payer is funding this project Brady said a proposal such as this is only offered in a few counties in the state of Tennessee that are classified as “distressed”.

The addition of a hotel is believed to attract an increase in sales tax for Grundy County that will primarily go towards Grundy County Schools. An estimation of $275,000 of new tax revenue earned from the hotel is dedicated to Grundy County Schools. The building was described as, “Money the empty building doesn’t generate today…” The project also raises a good point. Grundy County has a lot of outdoor tourist spots including The Fiery Gizzard, South Cumberland, and other waterfalls, lakes and parks that draw over 250,000 visitors each year. They shop, dine, and spend quality time in Grundy County, however, don’t have a spot to stay overnight. With the hotel, people will have a place to stay overnight and a reason to stay in the county longer, which will generate more tax revenue.

The hotel spot is considered, “A new destination in Grundy County,”

Plans are to transform the one hundred and two year old vacant DuBose Conference Center by restoring it into a full-service destination hotel. It is described that the hotel will contain one hundred and thirty three rooms, cottages, a pool, bars, a spa, recreation spots and trails. A restaurant open to the public will be included in the hotel as well.

Investments are already happening in the project; A local duster company and sanitation services.

“It is an upscale, designdriven boutique property, the kind you’d typically see in a market like Nashville or Charleston.”

Infrastructure is estimated to cost $106 million.

A significant amount of infrastructure investments including water lines, gas lines, sewer lines, drainage, new roads and parking have been taken into consideration, making this project be tremendously infrastructure- heavy. $17.8 million has been estimated for all other eligible improvements listed above.

Once the CDD expires, all subsequent taxes collected from the hotel flow to the County, City, and State for good. Throughout the process, local officials and community involvement will be kept informed to maintain accountability and clarity regarding the use of tax revenue and progress on the hotel.

The addition of the hotel brings good news to the people of Grundy County too. Approximately one hundred and twenty permanent jobs and several hundred construction jobs are expected to open up.

Local businesses are expected to increase in visitors for Grundy County’s gas stations, outfitters, restaurants and shops all year long.

Overall increase of profit for the Monteagle and Grundy County areas are expected to increase.

Grundy County seeks support from locals “Without this program, the hotel doesn’t get built. With it, Grundy County gets a landmark resort, good jobs, money for schools, and a game changing source of tax dollars- at no cost to today’s taxpayers.”

It is important to note that final details are subject to review and approval. This is not the final information or decision, but an update on this project.