Trying to rack my head over how to configure this topology properly. I'm attempting to create an wireless access point to connect devices in packet tracer, but running into issues with how DHCP assigns IP's to clients on the other side of the Access Point.

Topology, the red circle is the part of the network I'm having difficulties with. The random IoT devices is to demonstrate what I would be connecting wirelessly, the laptop is the troubleshoot dhcp through the AP.

This is me explaining what I'm doing/conceptualizing my thinking. a tl;dr is at the bottom for the main problem I'm facing. I need to use packet tracer though as a requirement (it's a class project) above all else.

I have a distribution layer of switches (3560's in a Port-Channel w/ LACP) which I was wanting to attach to a L2 switch to one of them via a trunk. The DLS switch is running DHCP for the access network, I (wrongfully) thought that the DHCP packets from my client devices would seamlessly pass through the light weight access point, but that was not the case and why I'm here.

My initial design idea was to have all my IOT wireless devices be in the 172.16.10.0/24 subnet on VLAN 10. This is me trying to isolate IOT devices from the rest of the network.

I tried to use the Home Gateway instead, but it wants distribute to clients a private class C network and have 172.16.10.0 be the internet.

My Ultimate goal is to have IOT devices in a isolated vlan 10, while having the IoT server in the 209.10.11.1 network as a representation of being an external network the IOT devices phone home to.

tl;dr: I have the configured wireless LAN controller, and the accompanying Light weight access point (LAP) is registered with my DHCP server. However, clients connecting to the LAP are not obtaining an IP from the DLS DHCP server, but the LAP does receive a DHCP address. Goal is to have IOT devices communicate with server in the 209.X.X.X network

Configs DHCP server(DLS Switch):

 ! hostname DLS2 ! ip dhcp excluded-address 172.16.10.1 172.16.10.10 ! ip dhcp pool IoT network 172.16.10.0 255.255.255.0 default-router 172.16.10.6 option 150 ip 172.16.10.8 ! ip routing ! port-channel load-balance src-dst-mac spanning-tree mode rapid-pvst ! interface Port-channel1 switchport trunk native vlan 666 switchport trunk encapsulation dot1q switchport mode trunk switchport nonegotiate ! interface FastEthernet0/1 switchport trunk native vlan 666 switchport trunk encapsulation dot1q switchport mode trunk switchport nonegotiate channel-group 1 mode active ! interface FastEthernet0/2 switchport trunk native vlan 666 switchport trunk encapsulation dot1q switchport mode trunk switchport nonegotiate channel-group 1 mode active ! interface FastEthernet0/3 switchport trunk native vlan 666 switchport trunk allowed vlan 10,20,40 switchport trunk encapsulation dot1q switchport mode trunk ! interface Vlan1 no ip address shutdown ! interface Vlan10 mac-address 0050.0f26.2701 ip address 172.16.10.6 255.255.255.0 ! interface Vlan20 mac-address 0050.0f26.2702 ip address 172.16.20.6 255.255.255.0 ! interface Vlan40 mac-address 0050.0f26.2703 ip address 172.16.40.6 255.255.255.0 ! router ospf 1 router-id 5.5.5.5 log-adjacency-changes ! ip classless ! end ! hostname ALS1 ! ! ! ! ! ! spanning-tree mode rapid-pvst spanning-tree extend system-id ! interface FastEthernet0/1 switchport trunk native vlan 666 switchport trunk allowed vlan 10,20,40 switchport mode trunk switchport nonegotiate ! interface FastEthernet0/2 switchport access vlan 10 switchport mode access ! interface FastEthernet0/3 switchport access vlan 10 switchport mode access ! interface FastEthernet0/4 switchport access vlan 10 switchport mode access ! interface Vlan1 no ip address shutdown ! interface Vlan10 mac-address 00d0.bae7.5701 ip address 172.16.10.7 255.255.255.0 ! interface Vlan20 mac-address 00d0.bae7.5702 ip address 172.16.20.7 255.255.255.0 ! interface Vlan40 mac-address 00d0.bae7.5703 ip address 172.16.40.7 255.255.255.0 ! ip default-gateway 172.16.10.6 ! end 

Sorry for the imagebb link, imgur stopped working for me.

Here are the images of the WLC configs,