Update:
I ended up buying a Short Shaft Fan Clutch
https://m.summitracing.com/parts/hda-2947/overview/ and 6 blade fan from Summit. The fan clutch brought the fan about an inch and a half closer to the motor. It's still not sitting where I'd like it but it will have to do. The temp gauge reads cooler for the most part. Occasionally the needle spikes but not as often. I was still concerned so I ran to Home Depot and picked up a inferred temp gun. Right below the thermostat housing reads 180°, sides of radiator reads 180° and the spot in the intake where the sending unit is reads 180°-190°. I'm pretty sure in in the clear. Thanks everyone for the advice.