I would loop the elastic around, tape it to the dropbox to see exactly were it interfere with the snap and if it in fact is dead-centre I would follow your wifes suggestion, if not then I would cut a notch out and as long as the elastic is connected it will be fine, you will glue it to the belt anyways....and...is that 1"? The reason I ask is because it looks smaller, hence less material to work with.