Reddit reviews Grizzly H5890 Repairman's Taper Reamer
We found 2 Reddit comments about Grizzly H5890 Repairman's Taper Reamer. Here are the top ones, ranked by their Reddit score.
Handle measures 3-1/2" longRemovable handle for compact storageSeven flutes for smooth bores
Get yourself a hand reamer. It is less than $10 on Amazon. A drill sometimes has too much torque.
http://www.amazon.com/gp/aw/d/B0002U8BZO/ref=s9_topr_hm_bHLOot_g469_i1
Definitely, any machine shop will have drills or reamers that can get that to where you want it to be. It probably wont cost more than a couple bucks for them to set up the machines and do the work. If you care more about the end product than the process, that is the route I would go.
Alternatively, you could get a reamer yourself and expand the hole to where you want it. Find the right size of something like http://www.amazon.com/Grizzly-H5890-Repairmans-Taper-Reamer/dp/B0002U8BZO and then ream away! What you are looking for is going to be called a repairman's taper reamer.
A third option would be to glue something across the face of that hole, smaller than your end hole, and use the hole saw as usual. Basically plug the hole and redrill.