Decorah P&Z Rejects Recommendation on Last-Mile Delivery Rules, Advances Data Center Regulations

You'll want to remember this moment. Help us record what's happening in Decorah. DECORAH — A continued dispute over Amazon delivery operations in downtown Decorah reached another turning point Monday when the city's Planning and Zoning Commission rejected a proposed set of zoning rules for last-mile delivery facilities. The commission also held a second public hearing on proposed regulations for data centers, another issue that City Manager Travis Goedken says has put Decorah at the forefront of zoning discussions in Northeast Iowa. The contrasting outcomes came during Monday meeting. The commission voted 4-2 against recommending the last-mile delivery amendments to the City Council, while unanimously recommending the proposed data center amendments. The two issues have developed on different tracks but share a common question for city officials: how should Decorah's zoning code address emerging commercial uses whose impacts don't fit neatly into existing categories? Last-Mile Delivery Hubs The last-mile delivery hub debate has unfolded for months, with questions about whether businesses in Decorah's commercial districts should be allowed to operate as Amazon Hub Delivery locations. The issue has divided city officials over how to balance the interests of downtown businesses participating in delivery programs against concerns about parking, traffic and the use of commercial storefronts. Previous discussions have included disagreement between the Planning and Zoning Commission and City Council over how the activity should be classified and regulated. Monday's hearing was the latest step in an effort to address the activity through the city's zoning code rather than individual cases. City Manager Travis Goedken told commissioners the proposed ordinance would establish definitions for last-mile delivery facilities and determine where they could operate. Under the proposal, last-mile delivery facilities would be permitted in the C1, C2 and M1 zoning districts. In the C3 district, they could operate through a conditional use permit, with a maximum of four such permits allowed at one time. The C3 provisions were designed to address concerns about how delivery operations could affect surrounding properties and public spaces. Among other requirements, the Board of Adjustment would consider whether a proposed facility had adequate vehicle access, parking and loading; whether safety impacts were mitigated through design; and whether the operation would place an unreasonable burden on curb space, public parking, bicycle facilities or pedestrian safety. A C3 facility also would have to be at least 100 feet from residential lots. Loading and staging areas would have to be located away from residential frontages where feasible. The proposed regulations would not establish specific operating-hour limits, but applicants would have to disclose their proposed hours of operation for review by the Board of Adjustment. The proposal also included an average fleet limit of two vehicles per day. The latest version contained two provisions that had not been part of earlier versions discussed by the commission. A facility would have to have either alley access or private off-street parking for deliveries on the same lot as the facility. And in the C3 district, delivery vehicles associated with a last-mile delivery facility generally would be prohibited from parking on public streets or publicly owned lots, with an exception for North Alley. Those parking provisions drew criticism during Monday's hearing. During public comment, one member of the public questioned whether downtown parking was being affected to the degree suggested by the proposed regulations. The speaker said they had begun tracking Amazon stops on July 14 and had observed at least one available parking space, aside from the space being used by an Amazon vehicle, on every day they monitored the area through Aug. 10. The speaker said there were typically two to six available spaces and pointed to other delivery and commercial vehicles that also use downtown streets. The speaker also said customers continued to find parking while visiting the business and that between 20 and 40 people came into the store each day to make returns. The testimony reflected a central disagreement in the broader debate: whether Amazon Hub Delivery should be treated as a distinct land use because of its effects on downtown streets and parking, or whether its activities are sufficiently similar to other delivery operations that the same standards should apply. The commission continued that debate after closing the public hearing. Commission Chair Ryan Delaney said his position had not changed after months of discussion and objected to the alley-access requirement. Delaney noted that he regularly sees other delivery companies, including Culligan, FedEx and UPS, parking on city streets and questioned why similar restrictions should apply specifically to Amazon-related operations. Commissioner Holly Reilly agreed, calling the proposal "selective and partisan>" The commission voted 4-2 against recommending the ordinance to the City Council. The vote does not end the matter. Goedken explained that the proposal will still go before the City Council, where a higher voting threshold, or a supermajority, would be required because the Planning and Zoning Commission did not recommend approval. The City Council is expected to set its own public hearing at its Aug. 17 meeting. Staff said the council's public hearing and first consideration of the ordinance are expected at its second meeting, Sept. 21. Data Center Rules Advance Without Public Comment The commission's other hearing involved a different issue: how Decorah should regulate data centers. No members of the public spoke during the hearing, and city staff said no written comments or objections had been received. The proposed amendment to Chapter 17.116 would make data centers a permitted principal use in the M3 General Industrial District. It also would establish performance standards covering utility capacity, water consumption, environmental protection, setbacks, noise, emergency response, security, construction impacts and eventual decommissioning. Goedken said the purpose is to accommodate potential future data center investment while minimizing impacts on municipal infrastructure, neighboring properties and public safety. The discussion comes as communities across Iowa and the region grapple with how to address data center development before projects are proposed. Decorah's consideration of the issue was prompted in part by zoning action elsewhere in the region. Previous local discussions have examined potential limits on data center development, including action by Allamakee County to regulate the use. Other Iowa counties have taken similar steps as data centers become a more prominent land-use issue. Linn County, for example, adopted zoning rules addressing data centers, including standards related to setbacks, noise, traffic, emergency planning and site-plan review, with additional requirements for large projects involving water, roads, utilities and natural resources. Dubuque County also began a formal data center planning process in 2026 after adopting a moratorium and developing a planning framework. Decorah's approach differs in that the city is establishing its regulations without a data center project before the commission. Delaney asked Goedken whether he had consulted with other communities or organizations working on similar rules. Goedken said Decorah is relatively far along compared with other communities in Northeast Iowa. Some larger communities, Goedken said, have received more attention over potential data center development but are still determining how they want to regulate the industry. He also said several communities had contacted Decorah seeking copies of its draft regulations to use as a starting point for their own ordinances. After closing the public hearing, the commission voted unanimously to recommend the data center amendments to the City Council. Be in the know, always! The free newsletter delivers local news, features, and tips directly to you—perfect for busy readers.