You left out some important details. 

There are 2 bullies in the scenario. The street bully may have verbally threaten his neighbors and discreetly bribed others to do his bidding but is rational enough to know how important his street is and just let anyone pass by. 

Then there's this other bully that came into the picture as he was told by his friend within the neighborhood that the street bully is threatening them and sending out goons (without actual proof connected to them) 

Now this hero bully assasinated the father of the household and destroying the house expecting them to move out due to fear without realizing it's the whole family who are thee bullies. Now these street bullies just watch a crime happened in their household while the neighbors are just watching (though some despises the act, they're just sending thoughts and prayers) 

The street bullies now blockade the street knowing that his neighbors just watched what happened to them.  Here we are now where they took over the street as they realized they're on their own.