The Lower Town of medieval Tallinn was divided into the Parish of St Nicholas’ and the Parish of St Olaf. The Church of the Holy Spirit, on the other hand, was a hospital church, forming a part of the hospital complex. The duties of the priest of the Holy Spirit included pastoral care of the sick and the poor, as well as the other inhabitants of the hospital, such as retired clergy. The Church of the Holy Spirit had one more function: sometimes the Tallinn City Council held its sessions there. Therefore, the church has at times been referred to as the Town Hall Chapel. It is likely that it was the city council who commissioned a new altarpiece from Lübeck for the main altar in the early 1480s. The altarpiece, which according to the inscription was completed in 1483, is decorated with the coats of arms of the city of Tallinn.
A 1484 letter from Bernt Notke’s Tallinn City Council has also survived, in which the master reminds the council that they still owe him money for one “panel” (that is, altarpiece). The letter mentions Bürgermeister Diderick Hagenbeke and his companion, in other words the wardens of the Church of the Holy Spirit, as the contract givers.