Atkinson council votes to charge LB840 legal fees back to loan applicants

The Atkinson City Council voted Aug. 4 to begin charging LB840 legal fees back to loan applicants, a change councilmembers said shifts the cost of attorney review to recipients of city-administered LB840 loans.

Moved by Councilwoman Helen Olson and seconded by Council President Leo Seger, the motion states that such fees “could be either added on to the loan or paid for by the applicant.” Council members noted the city will not know the fees until the loan is processed and the attorney’s bill is received.

The vote carried with Councilmembers Olson, Seger, Shane and Asher voting aye; Osborne and Krysl were absent. The council did not provide an estimate of likely fee amounts at the meeting.

Why it matters: LB840 programs typically provide local economic development loans or incentives. Charging legal fees back to applicants reduces the city’s immediate outlay but shifts costs to individual borrowers, which could affect loan affordability for small businesses or local projects that rely on LB840 assistance.

Council context and next steps: The motion was part of the consent/business portion of the meeting and passed on a roll-call vote. The city clerk indicated the exact fee amounts will be known only after loan processing and receipt of the attorney’s invoice.

The council took no additional public comment on the measure at the meeting. No implementing ordinance or administrative rule updating loan documents was presented in the minutes; if the city chooses to change written loan terms, that would typically appear in future council paperwork or staff reports.