PROFILES IN BUSINESS: Joe Famolare and the Foreign Trade Zone

Vermont Business Magazine, Feb 01, 2004 by Marcel, Joyce

Shipping prices would not increase because of Brattleboro's distance from entry ports, Famolare said.

"Overland-plus-sea arrangements with one price may be concluded with the ship companies from ports such as Shanghai, Livorno in Italy, and Belfast in

Ireland, directly to the future FTZ port of Brattleboro," Famolare said. "The trucking and handling costs remain the responsibility of the on-sea company, therefore eliminating the need of having to deal with domestic trucking companies and handlers in Boston or New York." Brattleboro is known to be a town sensitive to truck traffic, but an FTZ would not make a noticeable difference on its traffic patterns, Famolare said.

"Every single one of those empty warehouse locations had trucks coming," he said. "In my estimation, we're replenishing the business we had already."

If Famolare succeeds, cottage industries could spring up all over Brattleboro. People could take advantage of the tax breaks to import all manner of things diamonds, chocolate, textiles, handcrafts often working out of their own houses, which would be included in the FTZ. And businesses devoted just to FTZ affairs, like packing and shipping companies, brokerage offices, Custom's offices and accounting firms, might flourish.

"We'll have customs agents here," Famolare said. "They only have to come from Springfield, Mass, once a week. My ambition is that we'll have an on-site customs agent here all the time. When I did it myself, I had a custom agent's office. They had their own key. They loved it. I'm going to put an office here for them. That's the fun part. If I make a nice office for a customs agent here, guess what? They come here. They'll bring their family."

The FTZ fever has definitely caught on with Brattleboro's town government.

"The idea a little bit out of the box, but on the other hand, that's been Joe's mantra since he came to Brattleboro," said Brattleboro Town Manager Jerry Remillard. "As we looked at it in town government, it appeared as if it could have some economic benefit. It might be an incentive for somebody to move into this area to take that tax advantage. We tend to suffer more than we realize with the global economy This may be a way to offset some of that."

Brattleboro's business leaders are backing Famolare.

"I don't think anybody could see it until Joe started pointing it out," said John Leader, chairman of the board of Leader Distribution Systems, Inc. "Then it was kind of a snowball situation. The Brattleboro area is lucky to have Joe here, because he could have settled down anywhere. He's an international businessman. He's lived and worked in Italy, and he's been all over the world. I think we're pretty lucky he liked southern Vermont. He's done a lot for the community." Famolare does not regard himself as any kind of a hero.

"My selfish interest is to pay less taxes and make sure the town prospers,

Famolare said. "The problem with Brattleboro is just like thousands of towns in America with empty warehouse space. All the businesses are going away, and how are we going to compete and make ourselves different""