I agree that your neighbor was stupid for building there, but you gave him a choice between a kick in the nuts or a poke in the eye.
People her are giving you neat ideas to **** the neighbor.
The way I see it, Now it is the neighbors turn to return the favor.
I dont know how spiteful your neighbor can be, but this can get real interesting.
You know, that neighbors house would make an excellent halfway house to reintroduce people with chronic mental health disorders, or bad criminals back into society. The Fair Housing Act would make it 100% legal to do and no one (including your town) can legally stop him.
It would also make a great clubhouse for the local chapter of the Hells Angles, or Mongols Outlaw Motorcycle clubs. If he decides to rent it to them at a greatly reduced rate, Other than you calling the cops to complain about the hell raising a few times a week, there is probably nothing you could do about it.
I don't know the ethnic mix of your neighborhood, but I think it is time it had a drastic change, don't you.
Something tells me that this is far from being over. Keep us posted on what happens next.
Chris