3 bet/fold with bottom two on the turn

[KitCloudkicker]

live 20/40, playing 5 handed.

i'm sweating 2p2 Grease in this hand and i want to make sure i'm not giving bad advice.

an awful, loose, somewhat passive CO open limps. the button raises. I believe the button to be Federico (to 20/40 Borg regulars). he's a bit tricky postflop, plays too many hands preflop (e.g.limp UTG with K3s). Will semibluff draws on the turn but also will play strong and medium strength hands in the same manner. he wont get out of line with air however. SB folds, Grease defends BB with 7d4d. CO calls.

Flop is K74 two hearts. Grease checks, CO checks, button bets, Grease CR's, CO folds, button calls.

Turn black 9. Grease bets and I tell him to 3 bet if button raises. I think a fold is in order if button caps.

Agree?

Image considerations: I believe villain is good enough to play attention to the other players. Grease likely thus has a striaightforward TAG image.