Minimum Air Compressor Size

OK. Oil free compressors with that little air flow are not the best way to go. I would HIGHLY recommend contacting the electrician. The cost to have a 240V source placed in the garage may be a lot more reasonable than you think. A 240 V source is just two 120 V lines run to one spot. Nothing magical to it at all. Notice I keep saying 'source' instead of outlet. That is because most 240 V compressors need to be hard wired. If you do decide to have the wiring work done, buy the compressor, place it where you want it and then have the electrician wire it up for you. Just about any 240 V, 5HP, 60 or 80 gallon (I prefer 80) compressor will do what you need. I sandblast, powder coat, paint, grind and cut with a 5HP, 2 stage 80-gallon tank compressor.
That being said, if you cannot afford the wiring or the bigger 240 V compressor, you can make do with the one you listed. I did it myself with a small oil free compressor for several years. When I say make do, I mean you can use air tools and paint guns, but you have to be careful AND patient. On my old compressor, I could use most air tools, but not continuously. For example, you can use a three-inch cutoff tool or orbital sander for a minute or so, but then you need to stop while waiting for the compressor to catch up. It will take a lot longer, but it is doable if you have to. Samd with painting. Do some research and find the gun that uses the least air. I painted at least 15-20 cars with that same smaller compressor. I had to stop every once in a while for the compressor to catch up, but layed out some very nice paint jobs with it.
In summation, you could get by with the smaller compressor IF you have to, but you will be fighting it a lot. Go with the 240 V one if you at all can.
The 2 stage, dual piston is THE ticket for building pressure/fast recovery. I had a Huge ol compressor years ago. 240, but a single stage. Hated to wait for it to rebuild pressure, it wouldn't DA the deck lid of an A body! It's not a big deal to make the connections in his main panel, or to feed a Sub. And I've wired many Air Compressors/ Welders and Generators with cords. You can hard wire tho, it ain't nothing but a thing. I would be more concerned with voltage drop from distance, and making SURE the main could handle the load. The fact he has an open Dryer circuit helps. It also depends on the Load at a given time.