Thank you all for posting comments. It really make me feel much less paintfull.
I wanted to comment much sooner, but I was traveling all day and I just now getting settled.
But that gave me a good time to think back on the way I installed the fenders.
KC is right on about the tire coming up and hitting the fender when I hit the pothole. It seems like tires came up more toward the rear. Because of this, I will not be reusing the current holes. I will just fill these holes with epoxy and somehow cap to hide the ugly mess. I will shift fenders up for more clearance.
Speaking of clearance, I did space the fender and tire either 1.5" or 2". I did by using 2x4 or 2x4 and 1/2" plywood. Now the next part is my another dimensional hiccup. I did not account for the thickness of brackets and nuts that hold fender to the brackets.

I measured this morning and those totaled to about 3/4"!
So even I had fender and tire spaced 1.5", there were only less than 1" between tire and the nuts. I will make sure to account for those next time.
In some weird and funny way, it actually makes me feel better because that was my own error. I can easily control my own mistakes and fix. I've been doing that for past 2 years.

All I need to do is fix and watch out for the pot hole in the future. Beside I say great build is how you recover from your mistakes.
Oh, speaking of the pothole, I stop by and took the picture as I was leaving today.

I think the passenger side tire fell in to the middle section which is at least 2' in diameter and don't know how deep it is because of the water.
Well, I will back in garage tackling this problem. At least weather is much better now.
