I agree. We went through something similar to this in New London , Ct several years ago. The local government appropriated several home owners' properties by eminent domain to make room for commercial interests to expand and increase the city tax base. However, fair compensation of the homeowners was required. Though I do not know if the homeowners regarded the compensation as fair.

It may be that the city considers the beach area subject to boundary set backs similar to those used to install side walks on home owners' properties. With respect to waterfront properties in Connecticut the home owner owns the beach up to the high water mark of the tide. Below the high water mark the beach is public property.