P&Z "Last-Mile" Delivery Hubs Remain a Question After Lack of Consensus

Our Driftless region deserves more than postcards — it deserves a watchdog. Be that support. DECORAH — The Decorah Planning and Zoning Commission on Monday continued a months-long debate over whether "last-mile" delivery hubs, including those operated by Amazon, should be allowed in the city's C-3 commercial district, which includes much of the historic downtown. The discussion followed earlier conversations at the commission's Jan. 12 meeting, when members first raised concerns about how the delivery hubs fit under the city's zoning code. Under existing rules, the hubs are not permitted as either a principal or accessory use in the C-3 district, City Manager Travis Goedken said. Monday's agenda item was for discussion only, with no vote scheduled. Commissioners again failed to reach a clear consensus on whether the code should be amended to allow the hubs under certain conditions or whether the existing prohibition should remain in place. "These are relatively new operations," Goedken told the commission, noting that few comparable zoning ordinances exist elsewhere. "Our code does not currently allow these to operate as a permitted principal use or accessory use in the C-3 district." Several commissioners emphasized that last-mile delivery hubs function as a principal use rather than a secondary or accessory one because they are focused on receiving and distributing packages rather than supporting on-site retail sales. "I don't think it's appropriate to consider it an accessory use the way our code is written," Commissioner Hannah Garry said, comparing the hubs to logistics or distribution operations rather than traditional downtown retail activity. Others said the hubs could potentially work in the C-3 district but only with restrictions. Commissioners raised concerns about traffic, parking, safety and future growth, particularly on Water Street, a two-lane roadway that serves as the city's central commercial corridor. Commissioners also discussed the possibility of allowing the hubs through a conditional use permit, which would require review and approval by the Board of Adjustment. A "very rough draft ordinance" prepared by the city attorney, described repeatedly during the meeting as preliminary, outlines how such permits could work, including operational criteria and reporting requirements. Conditional use permits, Goedken explained, are designed to allow otherwise prohibited uses if they meet specific standards intended to protect neighboring properties and align with the district's purpose. Not all commissioners supported that approach. Some said conditional permits would be difficult to enforce and could place an added burden on city staff. "I'm wary of putting an extra load on staff when the code could simply say 'yes' or 'no,'" Garry said. Others pointed to the needs of existing downtown businesses, several of which are already participating in last-mile delivery programs. Those commissioners said flexibility could help small businesses survive in a challenging retail environment. "When you walk downtown and see long-vacant storefronts, and businesses tell us this helps them stay open, that matters," Commissioner Holly Reilly said. Goedken clarified that enforcement of the current zoning code has been paused while the commission considers whether to recommend changes. If no changes are made, staff would be required to notify businesses that the use is not allowed in the C-3 district. Those businesses could then appeal that determination to the Board of Adjustment. The commission also discussed whether last-mile delivery hubs might be a better fit in other zoning districts, such as C-1, C-2 or industrial areas, which have more infrastructure for loading and delivery traffic. Several commissioners suggested the city may ultimately need to define "last-mile delivery hubs" as a specific land use within the zoning code rather than addressing the issue only in the downtown district. No formal action was taken, and the commission agreed to continue the discussion at a future meeting, potentially after a seventh commissioner is appointed who could break the current gridlock. Any proposed zoning change would require a public hearing before being forwarded to the City Council for consideration. Until then, the status of last-mile delivery hubs in Decorah's downtown remains unresolved. Don't miss a beat! Subscribe for free and receive the stories, insights, and events that keep your community thriving.