Guess I should have clarified. We designed the new site before he gave us this logo. We sent a client survey to him and he specified color and layout. We then designed the site from that and designed a logo for it. He then sent the old logo over and would not let us use anything but that.
We did not want to offer to redesign the site because
1. He loved this design (minus the logo) and
2. We don’t want to have to charge him for a new design as he is a recurring client.