I was looking at your site and noticed you have some technical errors with your logo out of the fold and your face getting cut off. 

They will most likely offer refinancing that folds what is owed into a new loan.  

Any uptick in supply, will lower the prices but still re-mark your asset higher than it's been simply because the only solutions to creating more equal supply is two fold:1) lower rates2) build more1 will increase underlying asset price2 will lower underlying asset price at current conditions, but likely raise yours if you bought earlier.The right investment besides hard  assets, isn't S&P, but likely owning debt if we're looking 10-15 years from now.

The city council had banned STRs once before and later folded when enough signatures were gathered to place it on a ballot.  

You will be repaid 10 fold for your generosity.

I would encourage you to look at the dollars per square foot, that the other property sold for and compare it to your property’s dollars per square foot cost.Otherwise, my general feedback is two-fold… the signals we are getting from the Fed are that they are likely pausing rate hikes.  

In fact, we have increased our cash holding 3 fold.

So it's two fold.

Is it a lost cause and I'm just supposed to fold and cut my losses??

Thirdly you should let everybody know WHERE you are located so tax considerations can be folded into any suggestion.