Yes I raise the river like you did and yeah I would call the final bet..even though from the betting I think he might have backed into a straight. (maybe even a badly played set?)
there's no way he's putting you on a set here so he could also reraise with 2 pair.
I have to say I don't like the way this hand has been played. I would have bet it on the flop if I were in your position and try to take it down there and then. there's only one player to act behind you and you can therefore represent the ace. If mateyboy had a big hand he probably would have revealed it on the flop if you had raised 10$ and you wouldn't be wondering what to do on the river. (remember though I am a godawful player)
I agree totally with Boldie. You have to raise river, and you have to call. He may well have the straight, but 2 pair is a strong possibility as he checked the hand from the BB.
Boldie also makes a good point about the flop play. Most players don't know how to increase their BB/100 fairly significantly from semi-bluffs/bluffs into unraised flop pots with few players.
This is a simple example of course- representing an ace, but there are so many other very basic small moves out there to use.
E.g.
Raising with position with a strong draw
Betting out from the blinds* when a hole card had made any pair Vs just one limper on a ragged flop
Betting out from the blinds* with strong draws Vs no more than 3 opponents
Betting out from the blinds *on a low paired board with air Vs no more than 3 opponents
Betting from last position Vs just blinds with any hand
In full handed cash, the flop is the best place to make moves and nick small pots. Very rarely bluff big pots on latter streets unless you know your opponent very well.