suggestions for small speaker. floorstander of bookshelf.

Sonus Faber Chameleon B would be perfect.Cabinet size & 6" woofer give a solid Bass foundation & they are bottom ported so close to wall is no problem!They are also right at your budget limit & worth every penny!
As for the Martin Logan Motion mentioned above I demo’d them a few weeks ago & they need a little room to breath as the large port gets boomy close to wall & the 35XT’s are even worse,ALTHOUGH if they are given room to breath they are FANTASTIC speakers!
What are you driving them with?

Just stuff a pair of socks into the port -should tame the boom?

Q Acoustics Concept 20 

i am unfamiliar with using a sub with monitors. That may not be a bad thing but could somebody fill me in as to the hookup and placement of the sub. the gallo idea seems very interesting to me. do you need a separate amp crossover? i am clueless, sorry.

(((i modded a pair of vandersteen 2c and i believe them to be too big for my 14’ x 16’ room. looking to downsize.)))

Save your money.
Even though your speakers are 30 years old they are still ahead of smaller less cohesive box designs and other
well intended comments.
Even in a 9 x 12 room this works for you as its a sealed non ported design.
All you need to do is
(((insert the Vandersteen X2 assessment unit at your amp and start with the lowest dip switch settings.
Listen and work up on settings till desired bass is perfect for that room.
I promise you it will be a holy Cow moment!
Most likely un modding after will make the music even better.
Best JohnnyR Vandy dealer
PS if this is Greek to you call Audio connection Verona NJ