Perplexing solution found, bike is now ready to be a fishing machine

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I would take a 1" piece of tin that is a couple of inches long and notch one end so that it will fit onto the axle shaft under the nut that hold it into place. Then it could be bent with on offset to get it far enough away from the bike for the rod holder to be mounted.

Then use a conduit hanger to clamp the top of the rod holder to the top back corner of the bike rack.

Picture of the conduit hanger.
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