If you've got the skills race him on a road course. Where I live it's near to the country side and if you go out there, there are plenty of road courses that are free of traffic.
I had the SAME exact problem. M3 rich whore who couldn't drive worth **** wanting to race me. So I said okay, meet me at the top of millerton lake. He thought it was a 1/4 mile race until I explained to him that no, I like to actually race, not see who has more money into their car and can feather the clutch the best. So needless to say, he needed to get a repainted rear quarter panel and got the beatdown of a lifetime. =)
Next time I'm going to bring my cousin's H22 Vtec fully built hatchback to take him 1/4 mile racing.

this should be really funny.