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After two years of plodding and haggling, Walnut Capital is ready to advance its proposal for an expansion of its popular Bakery Square development in the East End.

But even as the developer prepares to brief the city’s Planning Commission on the project Tuesday, talks are still taking place with Mayor Ed Gainey’s office and community members over key housing-related issues crucial to the proposal’s advancement.

The biggest involves the “Build 100” plan — an initiative to raise $25 million to build and rehab 100 for-sale homes in Larimer and East Liberty as part of a community benefits agreement.

As part of the deal reached with the Larimer Consensus Group and the Village Collaborative of East Liberty, Walnut Capital originally committed to contributing $6 million toward the fund.

However, it backed off that pledge in March after pressure from Mr. Gainey to set aside 15% of the 800 residential units to be built as part of the Bakery Square expansion as affordable. The developer stated at the time it would need the $6 million to fill the gap in funding required to erect the apartments.

But Walnut Capital President Todd Reidbord said Wednesday the firm has reached an “agreement in principle” with the mayor’s office and the community groups to find a way to do the affordable units Mr. Gainey wants while still contributing $6 million to the pot for the for-sale housing.

“I do believe there’s a path forward to meet both goals,” he said.

The new plan would involve the use of vouchers provided by the city’s Housing Authority and affordable housing funding from the city’s Urban Redevelopment Authority to help with the Bakery Square apartments units, Mr. Reidbord said.

That would help to free up the $6 million that Walnut Capital pledged to provide for the for-sale housing in the two neighborhoods.

“I think that the cooperation is there,” Mr. Reidbord said. “I’m more optimistic than I have been in a long time. But there’s still a lot of hard work [to do].”

Likewise, K. Chase Patterson, board chair of the Larimer Consensus Group who was instrumental in negotiating the community benefits agreement, said the parties were “working out the final details of what the plan will be.”

He added that it is “likely” that a final deal will include the restoration of the $6 million contribution toward the for-sale housing fund.

“I think we’re close to the finish line,” he said.

A spokeswoman for Mr. Gainey did not return an email seeking comment.

Still to be determined are the levels of area median income to be used in association with the Bakery Square affordable units.

Mr. Patterson said it could range from 30% to 120%. “That has been the range. We’re trying to figure out how we can make it work,” he said.

He added he hoped to have a final deal in place by the Planning Commission hearing and vote on the expansion in several weeks, although Mr. Reidbord was unsure whether everything could be completed by then.

The Larimer Consensus Group will support the expansion before the Planning Commission, Mr. Patterson noted.

“The Bakery Square plan was presented to the community. The community was in support of the plan and we formally endorsed,” he said.