I've been there. It's a good place to be. If you have other (trusted) coders that you know, see if any of them are willing to take the work from job 1 at the going rate ($19/ hr). Ethically, I believe you can send the work to them (and they might be grateful, given the economy...) Additionally, be sure to bill for the hours that you spend spec'ing the work to your subcontractor (these will be few and far between -- but most companies would be willing to pay to have stuff completed sooner).

If you don't have trusted colleagues (and/or cannot find someone working for $19/ hr), I'd start looking for them. I recommend trying out oDesk (outsourcing). As long as you have decent specs, they can crank out work quickly for you. Of course, you will still need to rewrite a bunch of their stuff (most don't have great code quality, IME), but you bill that out as well.

This leaves you time for the real money making project.

The big problem is the on-site requirement. After working with them for 5 weeks, you should have some trust karma built. Talk with your manager, explain that it is necessary for you to work from home for the remainder of the project. Tell them that you need to work with other programmers in order to finish in a more reasonable amount of time. A decent company will agree.