There are several obstacles facing businesses located near the Chandler Crossings apartment complexes, East Lansing Economic Development Administrator Tim Dempsey said.

Although the area is divided between the city of East Lansing and Bath Township, businesses seem to filter in and out of the area after having their doors open for only a few years.

"There's a number of challenges faced by that shopping center," Dempsey said.

"One of them is its design and placement. It's really far back from Chandler Road.

"Although there has been growth up there, the growth is not at the level that can support some of the retail."

Home to about 3,330 student renters, there aren't enough people living there to fully finance the businesses in the area, making it hard for restaurants and other venues to succeed, Dempsey said.

The ECTC Bakery Cafe, which opened in June 2004 and was located in the heart of the Chandler Crossings apartments, closed its doors this summer. Mocha Mike's, a coffee shop that used to also be located in the area, closed in the spring of 2005.

"As far as people supporting businesses, you've seen a tremendous growth of people living in a geographic area, if you think back over the past 10 years," said Tim Daman, vice president for economic development at the Lansing Regional Chamber of Commerce.

"It's become a financial corridor for the tri-county area. It is becoming quite a location."

Also home to new housing developments for permanent residents and office space, the Northern Tier will eventually grow into an area for many new businesses and living spaces, Dempsey said.

"Everything else up there has really predominately been office space, which is done very well," he said.

The area is going to be a home to several businesses including banks and possibly home improvement stores, Daman said.

"It's an extremely important area," he said.

"It's kind of a mini financial hub. Who could argue the impact that Eastwood Towne Center has had on the Lansing region?"

Dempsey said Eastwood has generated a great deal of revenue for the area, but isn't something that represents the entire Northern Tier area.

"Eastwood and these other locations are extremely convenient to the Northern Tier," he said.

"Part of the economic success is determined by the sheer number of people up there. Retail has driven off a lot of households. I'm not sure there is a significant critical mass for that to succeed. Right now, that is going to be a challenge."