Hamden approves USPS five-year lease renewal, agrees to pay $13,000 broker fee from reserve

The Hamden Town Council voted June 1 to authorize the town manager to sign a five-year lease renewal with the United States Postal Service and separately approved spending $13,000 from the Municipal Building Reserve to pay a broker fee required up front.

Councilors pressed staff about the $13,000 fee and whether the brokerage firm had earned it on a lease renewal. A councilor described the fee as "an exorbitant fee for the brokerage firm" and asked what the firm did to earn it. Town staff and the town attorney said they tried to negotiate the fee away and that the Postal Service’s policy is not to pay brokerage commissions; staff said the broker asserted it negotiated a larger rent increase on the town’s behalf.

"Over time, we're gonna make about $65,000 more than we would have made without the increase that the brokerage firm got us," staff said, summarizing the projected net advantage over the lease term despite the upfront broker payment. Councilors expressed reluctance but voted to authorize the lease and the reserve expenditure; both motions passed by roll call with the council voting 6-0 (1 absent).

The council and staff also discussed whether the town could re-use the building for other municipal purposes and noted legal complications if the town attempted to force a relocation; staff said previous negotiations required involvement of higher-level postal officials and even outside legislative contact to reach agreement.

Next steps: the town will execute the lease and pay the broker fee from the Municipal Building Reserve; staff will retain documentation of negotiations.