Seems to me that you will be chasing your tail if you trap raccoons while your neighbor continues to feed them. In my option, if you do trap them, then euthanizing them is the best option (but still disgusting IMO). I think a very well trained live stock guardian dog is one option. OR is there any way you could install an electric fence to keep the coons out?
I just make it a point to find out what the people are feeding them and use this as bait it shortens my trapping time greatly