In response to Edward Skehan's query:

I've been doing high-end restorations on antique (1895-1915) electric
fans for many years, so have some experience with motor restorations.
Many of these motors don't _require_ rewinding, though I always feel
better knowing my windings are safe and will last another 100 years or
more.

For a complete rewind on a 1/8 hp Emerson motor I'd expect to pay an
electric shop around $200 +/- $50.   To have new bearings machined and
installed might cost another $100 or so.

I'm no expert on piano motors, but I suspect yours has an internal
(centrifugal) start switch, which shouldn't cost much to rebuild too.
I'd be curious to hear exactly what this shop did to your motor to
justify such a price.  I'd expect it to be gold plated in the least.

Doug Wendel