I understand that you don't want to cage the cat, however, you may need to do this on a short-term basis in order for him to stop the urinating behavior. Is he truly urinating or is he spraying? There is a difference and if he is spraying (my one 6 year old male bengal who is neutered still sprays sometimes due to stress, anxiety and over-stimulation-squirrels). He marks his territroy and I had him on Buspar for a month, now he is fine. He began this behavior when I introduced a new kitten a year ago. It's been fine lately but I'm adopting another so I'll have to go through it all again.
He may feel safer being in the cage with a litterbox and you can let him out for play time and slowly expand his area after about 2-3 weeks. Keep reassuring him by giving attention in and out of the cage. I'd hate to see the relationship be ruined. It amy turn out that he would do better in a home where he is the only cat. Good Luck!

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