Here is the finished product. I decided to put on a saddle from a 1983 Trek 620 to keep it period correct. I was going for a cyclocoss themed touring bike. Given this bike is more of a sport-tourer as opposed to a full fledged tourer, I thought it wouldn't hurt to try.
The tires are Club Roost Cross Terra. They are 27x 1 3/8. They have an aggressive side wall that poses clearance issues with the chainstays. There is no rubbing, however if I lower the PSI there may be some rubbing. If the wheel were to go slightly out of true it would also rub. So I think I may have to return them and get something smaller.

I rode the bike with another set of tires and it felt great, I felt the frame fit me well. However, I do feel this is woefully slow relative to my previous Schwinn, which felt like a rocket relative to this.