The Erie County Fiscal Stability Authority has agreed to borrow $98 million to help Erie County Medical Center Corp. build a nursing home at its campus on Buffalo’s East Side.

Borrowing through the control board will enable the ECMCC to obtain the financing at a much lower rate and shorter term, and save about $118 million in interest, the provider said in a statement.

Erie County Executive Chris Collins and Fiscal Stability Authority chairman Daniel Oliverio suggested shortening the term of the anticipated borrowing to from 30 years to 15 to help achieve the savings.

The savings “will help strengthen ECMCC’s financial position and strengthen the county’s as well,” Oliverio said.

The medical center wants to close the Erie County Home in Alden, 15 miles away, saying the facility is outdated and far from its headquarters. Erie County has agreed to contribute $11.5 million for the $160 million project.

Collins submitted a declaration of need to the Erie County legislature last Wednesday.

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