On December 16, 1884, the F. E. Shvetsov Craft School was opened, intended for the education of boys from low-income families in carpentry, turning, locksmithing, carving, shoemaking, bootmaking, and tailoring crafts. The school was located on the estate bequeathed to the city by merchant Fyodor Egorovich Shvetsov. He left a house with an outbuilding and land at the corner of Dvoryanskaya and Nikolskaya streets, six shops on Bazaar Square, and 20,000 rubles on the condition of establishing a craft school. Mainly orphans and children from poor families studied here, who after five years received the title of master of the I or II category. However, only carpentry-turning and shoemaking crafts were organized, and in 1897 the shoemaking workshop was closed due to lack of funds. Since the funds from Shvetsov's capital were insufficient to maintain the school, in 1895 it appealed to the city for financial support. The school building was constructed by the testator's mother, Varvara Yakovlevna Shvetsova.

In September 1883, work began on converting a two-story stone outbuilding, previously used as living quarters, for the needs of the school. By the end of the following year, the interior finishing of the building was completed, where workshops, dormitories for 20 students, and a kitchen were located. In 1887, an adjacent building was finished as the number of students increased to 40. However, soon, due to declining income from the shops on Bazaar Square, the basement and first floors of the building were rented out as apartments to the 2nd parish school and for city guards.

Later, a two-story stone building was added to the school from the side of Dvoryanskaya Street, designed by provincial engineer Kolodko, with a chapel dedicated to St. Nicholas the Wonderworker, consecrated on May 9, 1895. This church was considered one of the best in the city. The funds for its construction were provided by V. Ya. Shvetsova. The church was located on the second floor, accessed by an iron staircase from the main entrance, made at the factory of I. M. Lobanov. The parquet floor and altar made of cypress were crafted by the school's students. The carved walnut iconostasis was created by the Penza master Davydov, the icons were painted by Moscow artist Safonov, and the interior finishing was done by M. A. Rudkevich. All church furnishings were purchased in Samara at the expense of V. Ya. Shvetsova.

On January 1, 1892, an art gallery, bequeathed to Penza by former governor N. D. Seliverstov, opened in the school building. It remained there until 1897, when it was moved to the building of the art school.