By RODNEY HO/ rho@ajc.com, originally filed Wednesday March 18, 2015

Fox today announced it has renewed dark drama "Sleepy Hollow," despite a major drop in ratings its second season.

Sources tell me the show, which has been shot in Wilmington, N.C. its first two seasons, will be coming to Atlanta for season three because North Carolina severely trimmed back its tax credits for TV and film production.

Two likely places "Sleepy Hollow" could land are the new Eagle Rock studios off I-85 and Jimmy Carter Blvd. in Gwinnett County or EUE Screen Gems near Aaron's Amphitheatre at Lakewood. I hear the "Sleepy Hollow" production companies (K/O Paper Products and 20th TV) will have to make a decision relatively quickly because they have to start back production by June to ensure a timely September on-air return. (I hear they will do 18 episodes, the same as season two.)

The adventure thriller, playing off the "The Legend of Sleepy Hollow" by Washington Irving, opened with big viewership numbers in 2013 but lost more than 30 percent of its audience sophomore year. Given its price tag, a renewal was not assured. During season two, the show averaged just over 7 million viewers, counting one week of DVR usage. Freshman year, the show exceeded 10 million viewers a week.

"Sleepy Hollow" hired  Clifton Campbell as the new showrunner, replacing Mark Goffman. He had created the A&E drama "The Glades" and was co-executive producer of USA show "White Collar."

The show is fictionally set in the town of Sleepy Hollow, N.Y.

As the press release noted: