Turn her down to 1/2" sound ok?
I would turn it down just enough to clean up. Nice and parallel. You can indicate off of the bearing journals to see if the centres in the shaft are good to use. They should be, unless someone in the past has beat on them with a hammer. Then it gets a bit trickier, but still doable.
The pulley that was on that shaft probably has some deep gouges in its bore. I would bore it over size and make a custom sleeve that fits the undersized motor shaft and the oversized pulley bore. A piece of heavy walled DOM pipe would be a good starting point for a sleeve. I would make the sleeve a light press fit (with some red locktite) into the pulley. If the pulley is aluminum, you can even go the shrink fit route: leave the sleeve OD oversized. Heat the pulley evenly with a propane torch (or heat gun) and use red locktite and drop it in. Once it cools, it won’t come out again.
Then bore it out so the shaft just fits with no play. Cut the key way into the sleeve where the pulley’s is and install.