She may be simply being stubborn, but, in fact, she's not turning down ten times what the property is worth. The assessed value of the home and property is $128,000, but that's not the same as what she could sell it for. Assessments for tax purposes are lower than the actual worth of a parcel, sometimes (as in this instance) significantly so. Given that the house has been valued at $8000, it's probable that this is the "frozen" value of the home, which is how the assessor calculates the value for homes owned by seniors who fall below certain income levels. For the area of the city that the house is located in, the actual worth of the house and property is probably more like $500K to $600K. Considering what in-city property sells for (even in less desirable neighborhoods than Ballard), not to mention the profit that the development company stands to make if they could get her out and turn that parcel into a commercial site, $1M is a gross insulting underbid. They tried to take advantage of her and she didn't allow them to.

She's an old woman with no heirs; the developers will get that land eventually. I say good for her for making it difficult for them.