Well there lies the problem, i'm in an alliance already, have been for a long time and we control our surrounding islands quite nicely. I know there are 1 or 2 in the same position.
As everyone on the island donates all wood is pooled together, once island donations for that resources reach the total required for an upgrade, then the upgrade commences, stock is reset to zero and you start again, obviously as the level of the mine/mill/pit for that resource increases the amount required to trigger the next upgrade also increases.
wierd game
got to a stage where i cant upgrade anything cos i have no marble
and theres none for sale locally and cant look further cos that needs more marble :$
I've moved on to the biggest alliance in Delta, CEG. They're a good crowd with a friendly IRC channel. I recommend them to anyone over 10K score.
I'm at 34.7K atm, position 313. Really getting into the game. Onto my 5th colony (saving up for palace lvl 4 is tough!
Send me a message in game if you need any resources, my coords are [63:25] CEG Brownie.
Eventually they do yes. The first palace costs approx 550 wood. But there on after marble is required and as you advance so is crystal and wine.