Racism in colleague- wwyd?

I have a teacher friend + colleague who tends to say very “minimally” racist things - she would never say things like the N word BUT… she frequently says things like:

“It’s good Marquis (black student) attends our school instead of (name of low income, predominantly black school). He would become another thug.”

“I don’t feel comfortable driving on that side of town, I take the long way” (that side of town being the lower income, black and Hispanic neighborhoods).

“I have such a soft spot for the bad kids like Tyrese (black student). I like helping them improve and overcome where they come from”.

“I think it’s great that our school (private) allows scholarships to allow Hispanic kids to join us and experience a quality education. They wouldn’t get that at (name of predominately Hispanic public school).”

(Talking about a black student) “I wish his parents didn’t dress him so hood.”

(Talking about a white colleague who adopted a black child recently). “She is giving him opportunities he would have never had before if the courts had allowed his bio family to adopt him. I looked at their Facebook pages and they appear very ghetto.”

She is a white woman, grew up very privileged and is basically still completely taken care of by her mom and dad at 35 years old. I do consider her a friend but I am tired of constantly correcting her, explaining to her why what she is saying is inherently racist. She always responds with “I’m not racist! Black men are sooo handsome!” 🙄Another colleague is suggesting we express our concerns with our principal who is a black woman. This would most likely result in her being fired though. What would you do?