How to stop the neighbor kid from coming over?

My daughter is Seven and the neighbor kid(4 houses down) is 10&1/2. The girl is an only child and gets catty and negative when she doesn't get her way. She is more interested in playing Minecraft on my son's Xbox than playing with my daughter so we took it out if the equation and she is not allowed to play Xbox at our house now. My daughter is really into dance and tumbling and takes classes year round, her friend has started badmouthing that now and I'm afraid she will sour that, like she did Loom bracelets and dolls! Her mom and moms boyfriend seem to enjoy having a free babysitter. They send to our house after school and want to leave her til7p.m. I don't want to piss off the neighbors but summer is coming and my kids enjoy having their friends over and I don't want her spoiling it. My husband feels sorry for her since she says she has no friends, but I'm starting to see why she doesn't. How do we end this non-friendship w\o a neighborhood meltdown?

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