How can we structure this properly so that it's Kosher for the IRS and so that the integrity of the 1031 will not be compromised?

Send a letter that you have paid in full the agreed amount, any “changes” gc wants additional money for were to address non-workmanlike results that were expected and ordinary, but that you are willing to pay $20 for the base trim at Home Depot prices (maybe add $30-50 trip charge for worker to go buy) as an offer in compromise or good faith.

Specifically in the months ahead, I don't see a rational reason for there to be increased demand in self-storage as people could potentially be compromised financially and a self-storage payment isn't going to be high on their list. 

There’s a better compromise here that does not assume all evictions are a matter of wealthy landlords kicking poor tenants to the street.

I would pencil in longer hold times (the labor force in many areas will be compromised here in the next 2-3 weeks). 

3) Should she ask how much it would take for them to leave, or low-ball it and then come up with some type of compromise? 

Before the purchase is made from the IRA, the business can perform work, write off expenses associated with those efforts without compromising the integrity of the IRA.While I understand this is a bit of a gray area, I was told that until the asset is created in the IRA it does not fall under the Prohibited Transaction guidelines.

Validating her fears and then offering a reasonable compromise can go a long way.  

We do need to be mindful and I believe that the elderly and immune compromised need to be isolated but not the young and healthy who respond in a similar fashion to the common flu.

One thing I would say is definitely don't compromise.