Threatened by neighbour

On the opposite side of the street where we live there lives a man who has put a handicap parking sign on his door, my wife overlooked this sign and parked where he usually park his scooter. The result was that he threatened my wife, in front of our two small children, that if it happened again he would beat her up. I'm not going to pretend that nothing happend so I see two options, I take a personal talk with him tonight and try to persuade him to reason, but since I have overlooked other episodes where he behaves threatening I worried that the situation will escalate out of control. The second possibility is that I reported him to police for threats, but will the police do anything about it? Of course I could also just forget the episode and ask my wife to do the same, but i don't think he should avoid some sort of confrontation. Any advice appriciated.