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Abstract
Anthony Palazzolo owns approximately 20 acres of waterfront property in Westerly, Rhode Island, adjacent to a state park and in a popular summer resort area. The site primarily consists of wetlands with a small amount of upland area, and was purchased in 1959 by a corporation that Palazzolo controlled as sole shareholder. Efforts to develop the property in the early 1960s met resistance and were not pursued. In 1971, Rhode Island enacted legislation regulating wetlands that, the state conceded before the U.S. Supreme Court, made it impossible to build on the wetlands portion of Palazzolo's property. Then in 1978, title passed to Palazzolo personally when the corporation was dissolved for non-payment of taxes.