Jersey's Infrastructure Minister has announced the government and Jersey Community Land Trust will no longer be working together on a future use for Les Creux.
The not-for-profit group has pulled, despite being the preferred bidder for the lease.
It means the search for a tenant to operate the site in St Brelade as a community space is ongoing, almost a year after it began.
Read: New tenant sought for Les Creux Pavilion
On Tuesday (24 February) Infrastructure Minister Constable Andy Jehan told the States Assembly that discussions between both parties have ended 'amicably'.
"I can confirm that we aren't proceeding with the Jersey Community Land Trust, and in their correspondence I was pleased to see them praise officers from Jersey Property Holdings for their work during this process."
JCLT's vision for Les Creux was as a 'vibrant hub for community, sport, recreation, education, nature, and wellbeing.'
It said it wanted a sustainable facility 'established by a democratic and transparent organisation' that would compliment the wide park and 'add value to the island'.
However, it told Channel 103 it had encountered some issues during the tender process.
Co-founder, Xanthe Hamilton, says there is a strong interest in community-led developments and stewardship of unique local sites.
"It's more about the process that needs a bit of engineering to enable it.
"I think we can look to other places like Scotland, for example, which has a policy which puts the community in pole position and makes it much easier in the tendering process."
She joked it was a bit of a chicken-and-egg situation.
"You need planning, but also the preferred partners involved, but there's an element of risk there.
"In the current tendering process, you have to know everything before you get the lease, whereas a community development would need a bit of time to establish those uses first."
The JCLT says it remains committed to supporting public bodies and parishes that want to deepen community participation in regeneration, and that it hopes Les Creux will 'realise its potential as a space shaped by and for the community'.
"Public places thrive when communities have a genuine stake in their future. The JCLT is building a growing network of Islanders who believe in long-term stewardship, local voice, and democratic ownership of the spaces that matter most."
There will be an update on 10 March, as the government is talking to other 'various parties' about future use of the former bowls club.
Constable Jehan said negotiations are at a 'sensitive and confidential stage'.

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