A City Council committee on Thursday helped clear the way for a plan to dismantle the landmark Farwell Building and reconstruct its facade as part of a luxury condominium project on North Michigan Avenue.

On a related front, Ald. Burton Natarus (42d) withdrew from consideration an ordinance that would have allowed churches to be declared Chicago landmarks even if their owners objected. Natarus said he did not have the votes to adopt the proposal.

The 11-story Farwell at 664 N. Michigan Ave., the former home of the Terra Museum of American Art, became an official city landmark in 2004. But two engineering reports convinced members of the council's Committee on Historical Landmarks Preservation that the system holding the limestone slabs of the exterior in place is dangerously deteriorated and that rehabilitation would be economically unfeasible.

Prism Development Co. wants to build a 40-story condo tower, incorporating the reconstructed facade of the 1920s-era Farwell at the base of the high-rise.

Jonathan Fine, president of Preservation Chicago, contended that approving the development plan would send a "dangerous message" to owners of landmarks to defer maintenance and allow their buildings to deteriorate in order to make way for demolition and modern replacements.

David Bahlman, president of Landmarks Illinois, another public interest group, voiced concern about "the number of projects we have seen recently that only save pieces of buildings."

"When does an historic landmark stop being a landmark?" Bahlman asked. "Both Disney and Las Vegas specialize in mimicry of great places and structures. Chicago seems to be doing it to itself with projects like this. . . .

"At what point will Chicago not be Chicago but merely a commercially based parody of itself?"

Bahlman said that the Farwell has "very, very serious" structural problems and that there is "no perfect solution to a situation like this." But citing the possibility of setting a precedent for other landmark buildings, he said, "We see this as a slippery slope in spite of the fact there be no other alternative."

Ald. Vi Daley (43rd), a member of the committee, also voiced concern about a possible precedent but said she believes safety concerns trump them.

Natarus, the local alderman, said he favors the new project as a way to save the Farwell's architecturally significant features.

The proposal now goes to the full City Council for final consideration.

The city's landmarks ordinance, which Natarus helped draft, exempts buildings used for religious ceremonies unless their owners consent. But in a change of heart, the alderman introduced a measure in 2005 that would put churches on the same footing with other buildings, eliminating the ability to decline designation.

The Archdiocese of Chicago, which has razed some architecturally significant but deteriorating and expensive-to-maintain churches, is among the proposal's opponents.

Natarus expressed confidence Thursday that his measure would pass constitutional muster. But he asked that it be pulled from the committee's agenda because it would be rejected by his aldermanic colleagues.

"I have taken a count of the City Council, and it would fail," he said.