Mercer County Commissioners voted Thursday to enter into an $8.8 million bond agreement that would refinance the debts of Woodland Place, formerly the Mercer County Living Center.

The Coolspring Township nursing home -- which the county sold to a nonprofit group in December 1997 -- owes the county about $3.5 million on a mortgage note and First National Bank of Pennsylvania about $4.3 million on two loans used for renovations.

Woodland Place is paying back some of that money at more than 9 percent interest. It would repay the bond issue at 5.5 percent. The lowered interest rate should save the home about $32,000 a month on debt payments.

The county will guarantee the loan and the Grove City Area Hospital Authority will serve as a conduit for the funds.

The county will receive the $3.5 million it is owed on the mortgage note up front. Commissioner Olivia Lazor said the county plans to put more than $3 million of that up-front money in a long-term investment account that would not be touched for the life of the 30-year bond -- in case the home is unable to keep up with payments.

A representative from A.G. Edwards, a bond-selling company based locally in Hermitage, said the bond has already been bought by investors. "Based on the county's guaranty and its AAA (the highest investment-grade bond rating) insurance, it sold rather well," the representative said.