Your Grandfather had a real nice shop. If possible store everything you don't need now for future possibilities. The grinder needs to be as isolated as possible. The spindle is likely counter-clock wise rotation, so it will throw the grit in that direction. Consider that in it's placement. If at all possible put the compressor outside the shop. Placing the mill diagonally in a corner make a more user friendly work space. I would place the work bench where the band saw, and surface grinder are, the mig set next to the welding table, and the surface grinder, and band saw where the work bench are. The mill, grinder, and lathe, are more difficult to move,so it is best to consider their placement permanent. Everything else can be tweaked if needed.