If we can lock him up for 3-4 years I'd be tempted. I think that with his style, Emelin is a VERY tradable D, and we should be able to get a fairly low price tag since he just had 1 rookie season and while I loved him it's not like he broke some NHL records or turned out to be a 1st pairing D.
I'd go with what Whitesnake is suggesting, try 1.5M for 4, and if they refuse 1.75M for 3. I'm not sure what his place will be in the organization in the long term when all the new D graduate (Beaulieu, Tinordi, Ellis?, Thrower?) and depending on what happens with Markov (because while many write him off long term right now, if Markov actually gets back in shape and can play similar to what he did before injury he'll be a keeper likely for the next 5-7 years), and depending on his own progression. If he keeps improving, he might be an excellent 5-6th D, or a decent robust #4. If others pass him, hopefully he can get a nice return in a trade.