Hi,
It sounds like you are in a difficult spot. It's hard to say exactly what to do step by step, but my sense from what you describe is that people in the community may feel that trust has been broken, and you are caught in the middle. A few thoughts I have center around the importance of reestablishing that trust and bringing community partners together around regrouping and shaping the project in a way that makes the best of the circumstances and ultimately has a chance of benefiting the community. First, is there a small number of community partners that have been strong allies over time -- people that you could start the conversation with and brainstorm next steps? Second, I think now is probably a good time to listen - when people are upset, they may be able to articulate why they are disappointed and what they would like to see happen. That could be the starting point for re-shaping what the project does next. It is also a critical moment for people in the community to better understand your role in this and the predicament you find yourself in. I hope this helps. You might find Chapter 3 (on assessing community needs) and Chapter 17 (on problem solving) in the toolbox especially helpful.
Gabe Kuperminc