That's a great bike, and the owner of that shop is a really good guy. I bought a 2008 Major Jake from them in January, and I'm going out today to look at a '99 Muni Mula.

I've never had problems with heel strike on my Jake, but I don't have especially big feet. Even so, the chain stays are long enough that you shouldn't have a problem, especially if your pannier has any adjustability in its hook points.