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Council approves Nashville‑issued tax‑exempt bond resolution for Vanderbilt helicopters to serve Cookeville
Summary
Cookeville approved a resolution allowing the Metropolitan Nashville health and education facilities board to issue tax‑exempt debt to finance aircraft for Vanderbilt University Medical Center, including a helicopter to be based in Cookeville; staff said the financing creates no liability for the city.
The Cookeville City Council on May 15 adopted a resolution approving the issuance of tax‑exempt revenue bonds (or other tax‑exempt debt) by the Health and Education Facilities Board of Metropolitan Nashville and Davidson County to benefit Vanderbilt University Medical Center (VUMC). The resolution permits VUMC’s financing even though a portion of the aircraft to be financed is expected to be located in Cookeville.
City staff told the council VUMC seeks financing not to exceed $194,000,000 to purchase helicopters and other aircraft for acute‑care emergency medical services. Staff said the Health and Education Facilities Board would issue tax‑exempt debt and then loan the proceeds to VUMC. Because one aircraft is expected to be located at 4570 South Jefferson Avenue in Cookeville, the Internal Revenue Code requires approval by the local governing body where financed property will be located; staff said the approval complies with the Internal Revenue Code and will not create financial liability for the city.
Councilman Gilbert moved approval; Councilman Baji seconded. The council voted 4–0 to approve the resolution.
The resolution is an approval of the financing structure; it does not obligate the city to provide funds or assume debt. Staff recommended approval and indicated the decision was strictly an Internal Revenue Code affiliate approval required when tax‑exempt conduit financing benefits property located in the city.
