Wow, this really looks amazing guys! Great job so far, and please don't let it fade away, keep working on it whenever you can spare some time.
Also, I believe you could save tons of time if you'd invest a little effort into a script that could read the original level files and import the data in UE so you wouldn't have to recreate the levels by hand. There's another jazz2 remake project on github called "Project Carrot" (https://github.com/soulweaver91/project-carrot) that does just that (although in C++), so you could maybe check it out to at least least understand the file format from it and how to read it.
Good luck and I really hope to see this finished, you did a great job so far!