Its cool that you have a bike with that much sentimental value.

If much of the bike is no good one thing you could do is buy a donor bike. Get something with good wheels and whatever else you need. It would likely cost less that that wheelset and you would have a frame to sell afterward to lower the cost. If you wait for the right deal or deals you could make this a pretty nice little bike for not a ton of money. I am almost certain they make the Gatorskins in 27.