Out of curiosity, I looked up Grant Hill's salary and stats. Still very solid....13.2ppg off of 48% and 39% in and outside the arc. He's on a 1 year deal for $6.5M.
For a 2 or 3 yr deal, I would put Ray in the 6-7M/year range, with the 3rd year perhaps a team option.
He is clearing aging better than KG, and arguably our third best player. I don't see how 3M or so would be fair, unless he has a poor year, or gets hurt.