I think January is "take your local LEO out to breakfast month". I might befriend an officer with some rank and experience, explain the situation and get some off the record and out of the office advice on how to proceed over coffee and an omlette. Some of my friends are cops and they can be very informative when things are on a personal and unofficial level.
My parents lived on an airpark in NorCal for 10 years and they had a similar guy. He was a FO with United and hated everybody except my parents. Lot's of yelling and threats went on along with a few low passes in his airplane to scare people. At some point he gave his Twin Beech a dirt bath but managed to walk away and moved off the hill shortly after.
Cash, If you do decide to give your crazy neighbor to Rick V, can I have the RV-7?