The windshield wiper motor with its magnets is the problem. The 25 and the 255 Tom Cat have the wiper motor at the top of the window--and that may be a good solution for you also to move the wiper motor.
You will have to mount the compass away from the wiper motor. This may mean in the center of the "dash" or even further from the compass motor There will be some parallax, with your being set off to the side. You might also consider an electronic compass with a flux gate sensor which can be placed remotely. I picked up a discontinued one about a year ago for about $40.
There are also "tell tale" compasses, which can be mounted overhead. This is inconvient on the C Dory.
You will have a very difficult time getting that compass compensated, or even making a good deviation table or Napier diagram (the amount of deviation every few degrees) with a deviation of 60 degrees.
Deviation is the influence of magnetic fields on the boat, or in the close proximity of the boat, and will change as the boat swings in a circle. Deviation may be ferrous metal or electrically induced magnetic fields. That is why you need to make compensation tables or Napier diagrams for the compass with all circuits on and all circuits off.
Variation (commonly called declination) is the influence of the earth's magnetic pole being different than the geographical pole. In the Fairbanks area this is somewhere near 20 degrees east. That will be fairly constant, unless by some quirk you are over a highly magnetic field.
There is also dip. Most compasses sold in the US are made for the zone of 30 degrees North--this is usually not a problem until you go to 30 degrees South. But Fairbanks is almost 65 degrees N.--and for a very accurate compass, you might want to take dip into consideration..This is not done on small boat compasses.
You can compensate compasses, both using the built in compensators, and by using external magnets. But 7" from a magnetic motor is going to be too close to compensate.
One also has to be sure that the compass is aligned exactly parallel to the fore and aft plane of the boat.
My favorite instrument to compensate a compass is the sun compass. It is simple and easy to use. Plus you can check the compass in a few minutes if there is any question about putting in new electronics.
I like to use a hand bearing compass (puck type is easiest to use)--and check for deviation in various parts of the boat before mounting the steering compass.