If I understand correctly, the buyer wants to develop the development plan together with the city or something similar. In this respect, he will probably include exactly the land that he is buying from you. So it will likely be something like "agreeing on a boundary with the buyer and then separating and selling accordingly," while clearly communicating what the city has now told you.
How to best deal with the allotment garden association, no idea what is involved there. So, if all that is super complicated, it sounds to me like "then you just don't sell it." But if it is relatively easy and not problematic at all, then you just sell more. Whether it later becomes part of the development plan or not is, in my opinion, no longer your problem.