Unless it's a project you, personally, are SUPER passionate about, I'd walk away. Thank them politely for the job offer, but reiterate that you gave them your rate, and if they cannot meet your needs, you must regretfully decline. I've DONE that gig (probably not the exact one you're look at, but the hour commute and ridiculously low stipend), exactly for the reason you stated, and it's not worth it.
If you're looking to expand into other companies, ask the designers you enjoy working with where else they ply their trade, and enjoy working! I ended up in my current position thanks to a lighting designer I loved working with!