In a debate that seemed to pit preservation against progress, the latter prevailed yesterday when the Philadelphia Historical Commission voted 7-2 to demolish a historic church on Temple University's main campus to build a student dormitory.

The demolition of 112-year-old Thomas Hall, at Park Avenue and North Street, could begin as early as next month. The plan is to convert it into a $22-million, five-story student residence hall with 507 suite-style apartments that will be ready in September 1999.

Yesterday's vote was a victory for university officials, who maintained that the plan was part of an overall strategy to revitalize the campus.

But in exchange for allowing the church's demolition, the commission made the university promise to try to find another use for the vacant Baptist Temple, another historic structure located a block from Thomas Hall.

"This was a different, but difficult compromise," said Patricia Wilson Aden, senior vice president of the Preservation Alliance for Greater Philadelphia, a nonprofit group that had pushed for the preservation of Thomas Hall. "We do not want Temple University's plans to result in the gradual erosion of a historic urban environment."

The commission discarded Temple's argument that to demolish Thomas Hall was in the public's interest but agreed that it was an economic hardship to maintain the structure.

Martin S. Dorph, Temple treasurer and chief financial officer, had told the historical commission's financial hardship committee that demolition of Thomas Hall would cost about $375,000, while saving it and stabilizing its shell would cost $1.5 million and require the construction of an eight-story dorm.

A handful of Temple alumni who had vigorously opposed the demolition said they believed the compromise to save Baptist Temple came at the expense of Thomas Hall.

"You can't trade buildings like baseball cards," said Jerry Wilkinson, who started the Committee to Save Thomas Hall and made a final plea to preserve it before the commission yesterday. "Each building should be considered individually on its historic merit."

Wilkinson said the committee would take a final tour of Thomas Hall on Tuesday.

University officials had argued that demolishing the church was part of a long-range strategy to attract more students. Recent campus innovations included the Apollo of Temple athletic stadium and a new student recreation center.

"We're pleased that the Historical Commission gave us the opportunity to move forward," Dorph said. "We're not happy about having to tear down Thomas Hall, but we believe the university has to make some tough decisions with what it is trying to accomplish."

Dorph said Temple needs to have more resident students to create a social environment on campus and to attract retail outlets.

"We've taken surveys among students of why they weren't coming to Temple, and in two of the past three years, their number-one reason for not coming was a lack of campus activity and a social life," Dorph said. "This is exactly what we needed to create that kind of activity and to stay competitive."