Bikepedia says the MSRP on that year of T1 was about $830 USD. I have no idea what the dealer's cost would be.
As long as the roads aren't too beat up in your area you shouldn't have any trouble commuting on that style of bike. I ride a similar bike, the 2010 Fuji Track Comp, and it works well for me. (well, I ride the Surly when it's wet because fenders) I'd be concerned if I had to lock it up unattended very often, though.
Which hasn't been mentioned or asked yet. Will you have to lock it up unattended very often? Will you have to lock it up in sketchy neighborhoods? If so, I'd suggest something cheap that doesn't draw attention to itself. (or just make sure yours is never the nicest bike on the rack
)