A developer has agreed to reduce the height of a $120-million luxury housing development next to Boston’s Faneuil Hall Marketplace in response to neighborhood concerns about shadows on the Rose Fitzgerald Kennedy Greenway.

Fortis Property Group last year proposed a 10-story addition to the six-story Dock Square Garage.

The latest plans call for a 7-story, 220,000-square-foot vertical addition and an additional 30,000 square feet of residential space on the lower floors, contained in a horizontal addition and conversion of some of the existing parking area. The changes increase the housing component to 250 units, up from 195 in the original plan. The new proposal reduces the building’s total height from 209 to 160 feet.

To comply with Boston’s inclusionary development policy, 33 of the housing units would be income-restricted.

At a community meeting this week, some neighborhood residents remained unsatisfied by the changes, saying the glass-wrapped exterior clashes with the historic architecture in the neighborhood, NorthEndWaterfront.com reported.

The original addition, designed by Stantec architects, ranged in height from 76 to 209 feet in a strategy designed to minimize shadows on the Greenway.

Fortis acquired the garage at 20 Clinton St.  for $170 million from original developer Dock Square Parking Assoc.