So, it's working now. I'm thinking the problem was either with the DHCP server or the network. Here's the quick and dirty so far.
I tried changing from Centralized L3 to Centralized L2 having the DHCP relay at the IAP and at the 7010 controller. No joy. So, I changed everything back to the way it was: Centralized Layer 3 still not working.
I ended up opening a ticket with Aruba TAC and walked away for a while. When TAC contacted me and we began troubleshooting, we noticed that the workingstation got an IP address.
We forced the client to renew/release a few times and it was working.
Same configuration I had on the IAP & controller as before.
So, something was going on on the network/DHCP server side. It all started working after the close of business.
I'll check it again Monday morning to make sure it's still operating and if not, I'll be expanding root cause analysis.
I'll update this thread when i find the answer.
Thanks for the recommendations.