Sorry mate, reading that press release, even assuming nefarious intent, it seems like shutting it down is the only option.
Totally understandable that those involved including yourself would be very upset. I can't imagine your grief. The photos you've shared present a really unique space.
I've never experienced the loss of something like this in this way. However, I think "grief" is probably an apt description of what everyone is experiencing.
If you were asking for advice (and I'm not sure you are) mine would be to consider spending some of the remaining funding on group counselling sessions for members.