Spanning tree is in use, but portfast was not enabled on the switch. Thus DHCP times out waiting for the network spanning tree to be built.
In the switch configuration, enable Portfast for the needed ports.
Additional info on Spanning Tree PortFast: http://www.cisco.com/en/US/products/hw/switches/ps679/products_configuration_guide_chapter09186a008007d779.html#32976
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