I have stayed at a placed called Redwood Lodge in Fayette, several years ago. It was pretty new and had a lodge style atmosphere. There is a nice family restaurant in town called Boike's. I did a search and the name of the lodge is now called Americinn. Fayette is about 20 miles south of St Lucas on Hwy 150. Otherwise, I am sure there are some places in Decorah. New Hampton is also a nice town.
You can get onto Hwy 150 off of Interstate 380 between Cedar Rapids and Waterloo. You could take a look at the place on the way up.