Residents were evacuated from their homes on Thursday after violent dissident republicans told an intermediary they had left a bomb in the area.
Following two days of searching, police said a viable bomb device was found on Friday and made safe by British Army ATO.
The Foyle MLA said:“This is the second alert in as many days. These alerts do nothing for the image of Derry.
“These alerts have caused disruption in the area, on two occasions residents were asked to leave their homes.
“This was a reckless attack and the last thing the people of Derry want.
“Whoever is behind this alert needs to realise they do not represent the people of Derry and stop these futile actions immediately.
“Anyone with any information on these alerts should bring it forward to the PSNI.”