A revamped development proposal from David Mirvish seeks to build just two residential towers on King Street West, while retaining the Princess of Wales Theatre that was slated for demolition.

Nearly 20 months ago, Mirvish came forward with a plan to build three 90-storey condo towers, which would be designed by renowned architect Frank Gehry. To make room for those structures, the theatre had to go.

But that pitch was rejected by city council in a decision that cited concerns about over-densification in the area, the height of the towers and whether infrastructure already in the place in the neighbourhood could support such a massive development. 

Council also said the plan did not respect the area's historic value as a hub of art and culture in the city. 

The new proposal would have two condo towers — one at a height of 92 storeys, the other at 82 storeys — built side-by-side with a public square between at street level. Both would still be designed by Gehry.

"Because we’re now not doing three towers, we’ve dropped the density by 25 to 30 per cent and we've dropped the number of units by 600 units," Mirvish said Tuesday, when speaking with CBC News.

In total, Mirvish expects these proposed pair of towers would have between 2,000 and 2,100 units.

The new design also keeps the famed Princess of Wales Threatre, and a space for art exhibitions. 

Mirvish said he believes that the amended approach will receive approval from the city. 

"When we radically changed what we were doing and reduced it considerably, and changed the nature of it, we had the support of the people we were working with and we have the planning department's support in taking this forward," Mirvish said.

Jennifer Keesmaat, the city’s chief planner, said the two sides are now "substantively towards agreement."

"We will now make a recommendation to city council," she said.

The new development plan must still go through various approval stages.

With a report from the CBC's Stephanie Matteis