Emperor Peter I (1672-1725) expanded the borders of the Russian Empire in the course of the Northern War and managed to annex the whole Estonian territory by the year 1710. Therefore the protection of the new border areas became the priority of the ruler and he paid a lot of attention to the reconstruction of ports in Tallinn and Paldiski and visited Tallinn several times.
Together with the site of the would-be palace, a summer estate and a 17th-century cottage that had belonged to town councillor von Drenteln were purchased for the emperor's use in 1713. The small cottage was enlarged with a wing and the outcome was a building with a hall, a kitchen and four rooms. The small summer residence was in use until the emperor's death. The succeeding rulers used the Palace of Kadriorg that had been completed only after Peter's death and the small building was neglected. The building was restored at the order of Emperor Alexander I after he visited Tallinn in 1804. The wing, however, was not. The kitchen was reconstructed and a dining room was built above it on the first floor that had not existed before.