Preheat oven to 350°.
To prepare sauce, heat oil in a large saucepan over medium heat. Add onion and bell pepper; sauté for 8 minutes or until tender, stirring frequently. Add the tomato and next 6 ingredients (tomato through broth). Bring to a boil, reduce heat, and simmer for 45 minutes, stirring occasionally.
To prepare potatoes, combine 1/2 teaspoon salt, 1/2 teaspoon basil, red pepper, and 1/8 teaspoon black pepper in a large bowl. Add the potatoes; toss well, and set aside. Combine cheeses. Spoon 1 1/2 cups potato mixture into an 11 x 7-inch baking dish coated with cooking spray. Top with 1 cup sauce and 2/3 cup cheese mixture. Repeat layers, reserving 2/3 cup cheese mixture. Cover and bake at 350° for 1 hour. Uncover and sprinkle with 2/3 cup cheese mixture; bake an additional 10 minutes or until bubbly.