The identity of a Phoenix man accused of shooting his neighbor on Thursday afternoon, apparently stemming from a running dispute, was released by authorities Friday along with more details about the incident.

Gary Kelley, 50, was arrested after police suspect he shot and killed his 44-year-old neighbor, Juan Varela, on the sidewalk near their houses in 6400 block of South Montezuma Street at about 1 p.m., according to the Phoenix Police Department.

Police said Kelley and Varela knew each other and have had numerous altercations during the past few years.

Varela's brother, Antonio, 45, was also involved in the incident.

Antonio told police that he came home Thursday afternoon to find Kelley walking toward his brother, who was watering a tree in the front yard, according to a police report.

Police said Kelley repeated a racial slur toward Varela several times before saying, "Hurry up and go back to Mexico, or you're going to die!"

Maria Lopez, Varela's niece, said he was a second-generation American who was born in Phoenix. He had a wife and a 13-year-old daughter.

Varela was said to have attempted to kick Kelley, but missed. Kelley allegedly pulled out a revolver and shot Varela once in the neck area, police said.

Police said he pointed the gun at the brother as well, before running into his house.

Kelley, holding a beer, left his house when police arrived. Police said he appeared intoxicated.

Kelley was not complying with officers' commands, police said, so he was pepper sprayed and taken into custody.

Varela was taken to a local hospital where he died.

Kelley was arrested on suspicion of second-degree murder and aggravated assault with a weapon, police said.

Lopez said when Kelley had been drinking, he sometimes made racial comments to her uncle and cousins, who lived next door. When Kelley wasn't drinking, Lopez said there were no issues.

Manuel Ochoa, who lived next door to Kelley, was shocked by the incident.

"I didn't even know he could do something like that," he said.

Ochoa said that his family always got along well with Kelley, and they often helped each other in everyday situations.

He said that Kelley mentioned to him once that he had a gun, but he never saw it.