It's already happening in Massachusetts and New York, now the next state to turn a former mental health facility into quality real estate is Kentucky. The creepy Waverly Hills Sanatorium in Louisville will become a 78-room boutique hotel with a spa, fitness center and meeting space for business groups. The historic landmark, which once housed tuberculosis patients is reputedly haunted and has been on a variety of televisions shows as one of the most haunted places in the U.S.

Charles Mattingly and his wife Tina, who bought the property in $225,000 for 2001 are planning to keep the ghostly theme of the building during the $18 million renovation. The couple have lived on the property for the last year and have videos that show steaks of light and glowing orbs. The Real Waverly Hills website has a file dedicated to paranormal photos. There is also a slideshow with recent photos that show a building in need of some serious work.. The Mattinglys are planning an eco-friendly hotel with a solar-powered electric system, geothermal heating, a parking structure with a rooftop garden and floors made of either cork or recycled rubber. While the couple are hoping that the ghostly allure will attract some customers they are also hoping that the hotel will attract those who may not be aware of its spooky reputation.

In celebration of Big Brown's seemingly inevitable Triple Crown victory at tomorrow's Belmont Stakes, our favorite small batch bourbon Woodford Reserve has created a special cocktail. The "Big Brown Triple Crown" recipe is as follows:

1 1/2 ounces Woodford Reserve
3 ounces Sweet and Sour Mix
3 dashes Chambord (1/4 ounce)

Shake vigorously and strain into a tall glass with ice. Garnish with 3 blackberries (one for each crown, natch).

The Woodford Reserve Distillery in Versailles, Kentucky, founded in 1812, is a National Historic Landmark with strong ties to horseracing. It was selected as the Official Bourbon of the Kentucky Derby, and as we can personally attest, it also makes a mean mint julep. Check out the BBTC cocktail and more in the gallery.

Last year Woodford Reserve gave 50 traditional mint juleps a $1000 upgrade at the Kentucky Derby by using exotic ingredients and serving them in gold cups with silver straws. With the drinks providing such a unique keepsake and proceeds benefiting retired horses and jockeys through Thoroughbred Charities of America, the $1000 juleps were huge a success. So this year they'll be coming around again -- only with even more flair than before.

This year there will be a julep cup representing each of the Derby winners all the way from the first, Aristides, to the most recent, Barbaro. Those two, plus the 11 triple crown winners in between, will be auctioned off online between April 17th and May 1st -- and of course somewhat of a bidding war is expected over Barbaro's cup (it will be interesting to see who wins out on that one). Altogether this year there will be a grand total of 133 special edition mint juleps made, with only 10 being held back for sale at the actual race. In addition to those 10, and the 13 up for online auction, 109 are available to purchase online for $1000 each (first come first buy), and one will be reserved and sent to this year's Derby winner, free of charge.

As before, the juleps will leave nothing wanting in the way of exotic ingredients from around the world, featuring mint from Ireland, organic sugar from Australia, ice from the Bavarian Alps, and of course bourbon from Woodford Reserve.

As a rule, I don't highlight homes in progress unless they are truly interesting. But I don't often seem contemporary homes being built in the horse country of Lexington, Kentucky. This modern home sits on over 10 acres of Bluegrass land. The home is on a private lane and has both a main house and separate guest quarters. The modern home will have a reflecting pool along the front entry and access will be via a bridge over the pool and a water fall with pool installed along the rear. The tower includes a balcony. The home is all angles and glass and steel. The only traditional notes seem to be the massive brick fireplaces and the Kentucky Walnut floors. There will be an indoor/outdoor spa room with glass walls, skylights, outside limestone shower, Finlander sauna and whirlpool. The home will have an impressive Artemedia Kitchen from Valcucine done in gray glass with graffiti artwork signed by the artist and the latest high-end appliances.

The master bedroom is on the first floor and will have a tub and limestone shower and stairs leading to a dressing room and the spa room.There will also be a media room with a viewing platform and motorized curtains. The second level will have three bedroom suits with private baths. Other features include a solar heating system, library, dog wash and an office. The guest quarters include a living room, kitchen with laundry and a master suite and there is also a three car garage. It is listed at $4.25 million. After the jump, future Dwell eye candy.

It used to be that in Louisville, Kentucky, hotel choices were pretty simple, it was the Brown or the Seelbach. Now there are a host of exciting projects set to renovate the downtown area, some already open like the 21C Museum and Hotel and some yet to come. More plans have been revealed for the Museum Plaza, a massive project which will dominate the downtown area. It has now been announced that the 62-story skyscraper will have a 246-room Westin Hotel with a ballroom, fitness center, spa, three-meal restaurant and a bar/lounge. The project also includes luxury condos and an elevated park. The $465 million Museum Plaza project is expected to bring over 10,000 tourists per day and provide a huge boost to the Kentucky economy. Construction on the project should begin in summer 2007 and last through fall of 2010. You can watch video on the project from a local Lousiville news station here.

In honor of the Kentucky Derby, our estate of the day takes us to this great property in Louisville, Kentucky. One of the most beautiful houses in Old Louisville, Rostrevor was created in 1908 by design firm Carrere & Hastings. The 23-room mansion was the home of Mr. and Mrs. Jouett Ross Todd. The home is built of limestone and has a Renaissance style with a red tile roof. The property has classic lines and details that include ornate moldings and stone fireplaces. There is a wood paneled library, formal dining room and a wine cellar. The landscaped grounds of over two acres include an additional lot, formal gardens, a swimming pool and a three-car garage. It is listed at $7.5 million. A few pictures of the elegant interior after the jump.

If you are thinking of heading to Louisville for the Kentucky Derby it's still not too late to rent a local house but it will cost you. Like Super Bowl houses the Kentucky Derby options run from the relatively modest to the deeply extravagant. This five-bedroom home has a master suite with a Jacuzzi, formal dining room and a workout area. It comes with six free Derby tickets and rents for $50,000 Thursday through Saturday.

If you are in Kentucky this week and looking for a special place to eat far away from the Derby madness, you might want to check out the Holly Hill Inn. The historic restaurant is deep in the horse country of Midway, about an hour from Louisville. The inn is listed on the National Register of Historic Places and the cuisine is elegant and fresh with a French flair. They serve a prix fixe menu Wednesday through Saturday with a three-course dinner menu for  $35, four courses for $40. and a five-course dinner for $45. They also have an impressive wine list chosen by sommelier/owner Chris Michel. I had the pleasure of eating here a couple of years ago and can highly recommend both the food and the lovely bucolic setting.

[via Wine Spectator]

Just in time for Derby season, a new hotel has opened in Louisville, Kentucky. The 21C Museum and Hotel is located in downtown Louisville and offers 90 rooms including six suites. The rooms have high ceilings, flat-screen televisions, 450-thread-count sheets, iPods and original works of art from the owners' $10 million collection. The hotel also includes a 5,000-square-foot contemporary art museum and a fitness center as well as a new restaurant, Proof on Main that serves American cuisine with a Tuscan flair. Room start at $199, but Derby weekend is already all booked up. Given that many most of Louisville's luxury hotel options are more on the traditional side, it's nice to see a touch of modern come to downtown.

[via Hotel Newswire]

More luxury condos are planned along the Ohio River. We mentioned a luxury condominium project in Cincinnati, now the SouthShore Residences, three condominium towers on the Ohio River will offer more riverside luxury from the other side. The complex in Newport, Kentucky will include a marina, clubhouse, pool, putting green and serenity garden. The three towers  in the $165 million complex are angled to offer views of downtown Cincinnati. The towers will offer 200 units that will have 1,000 to 4,000 square feet and sell for $250,000 to $2 million. The developers are hoping to break ground this summer and be open by late 2007.

[via The Enquirer]

This beautiful chateau-like home is located near Lexington Kentucky in prime horse country. The Black Diamond Farm is a 63 acre estate with a six bedroom 31,000 square foot manor house that has an elevator, billiards room, master suite with two fireplaces, pub and wine cellar, and a gourmet kitchen. There is also a two-story 13,000 square foot pool house and a four-car garage with guest apartments. The farm includes a 20-stall barn and the grounds include two ponds with fountains and waterfalls. This estate is listed at $14 million.