Roxy is from Canada? Kip's father lives in Canada.
I think 'chill out' on a mat is great. If you've read 'Control Unleashed: The Puppy Program" there are lots of great tips for training a solid relaxed mat behavior.
I do a lot of desensitization with a mat (not so much with Kip, but my reactive Catahoula needs this). For example, he gets worked up about the cat: I get out the mat and he lies down on it. I pet the cat with one hand at the same time as giving Geri a treat (or a constant stream of treats if needed). Then I try to stretch it out a bit: Pet Cat > Geri stays on mat > Give him a cookie. Pet cat for 30 seconds >Geri stays on mat > Give him a cookie. Then increase the challenge by doing more exciting things before rewarding Geri, like picking up the cat, playing with the cat, walking around holding the cat (BTW my cat is fine with all this - I wouldn't do this if she was uncomfortable around Geri). The goal is for Geri to stay calm on his mat no matter what. I don't know if something like this might work for Roxy?