Does this guy have a bonafide offer from another company, or wage data to support his request? If he doesn't (and that's what it sounds like), I'd never consider paying this.
After no calls/no shows and holding you over the coals for such a huge pay increase, I'm surpised he didn't need surgery to remove your boot from his behind.
This sounds like a guy that will always be playing you for more money. With the cooling economy, there may be a larger pool of people to hire from, which drops his stock considerably. So show him the door, and if/when he asks to come back later in the season, offer him less than he's making now.