I would give a small word of caution against using only 1 horse power if your building a 3 to 4 wheel grinder; especially if you plan on using step pulleys and a belt. It would work "OK" if direct drive, but then you're only limited to one single speed, and either way, you'll likely be finding your self wanting a little more power.
Now if the price is good and it's all you have available at the moment, by all means, go for it, but if you can find something similar with 1.5 to 2hp, I think you'll be happier for it.
You could always upgrade down the line, and then that 1hp motor would be perfect for a disc sanding setup.