A contract postal unit in Manoa that was set to shut down at the end of the month will remain open after the U.S. Postal Service reached an agreement with the postal unit operator, the USPS announced today.

“We’re pleased to continue our partnership with the operator of the Manoa CPU,” said USPS Hawaii District Manager Eileen Veach in a statement. “We look forward to working with him and his staff at the Manoa CPU to serve the residents of Manoa.”

Manoa CPU, located at Manoa Marketplace on Woodlawn Drive, is a supplier contracted by the USPS and privately operated. The unit was slated to shut down at the end of this month because of a rent increase under a new lease.

Alexander & Baldwin owns the shopping center where Manoa CPU is located.

Due to the higher rent, the operator sought to offset increased costs by requesting to renegotiate his contract with USPS.

The postal service initially denied the operator’s request.

Congressman Ed Case (D-Hawaii) sent a letter to Postmaster General Louis DeJoy Friday, requesting to reevaluate the decision to deny the operator’s request.

In the letter, House Appropriations Committee member Case said, “The Manoa Post Office CPU has served the 24,000 residents of Manoa Valley for decades. It provides essential community access to postal service, PO Boxes and other postal products, which have become more crucial for our small businesses and residents during the COVID-19 pandemic.”

Case also pointed to concerns of “Hawaii’s unique circumstances including very high land prices and costs of goods and services, many federal cost-benefit analysis formulas are not appropriate for Hawaii.”

In the past, Case has requested studies from the General Services Administration to ensure its leasing equations account for these higher costs.

USPS revisited the matter after much discussion among USPS managers at the local, regional and national levels and reached a new decision to allow the operator to continue operations.

The postal service did not disclose details of the agreement.

In a statement, USPS spokesman Duke Gonzales said, “As with all operational decisions, it balances the efficient use of the Postal Service’s limited resources with its commitment to effectively serve its customers.”

Case said, “I applaud our local, regional and national USPS for taking a second look, recognizing local realities and making it work.”

Letter to Postmaster General Louis DeJoy by Honolulu Star-Advertiser on Scribd