Karen Mullan said that a search is being carried out at a building site at the former Nazareth House residential home on Bishop Street.
Police confirmed that detectives from the PSNI’s Terrorism Investigation Unit are conducting a search in the Bishop Street area in connection with an ongoing investigation into dissident republican activity.
The site is close to a primary school and near Lumen Christi College.
However, Mrs Mullan said that Lumen Christi is still open and students arriving to get their A-Level results can get access.
“The local residents do not want this in the area and young people who are filled with hope for their future at this time should not have to see thing type of thing,” the Foyle MLA said.
“I and my Sinn Fein colleagues will continue to liaise with the PSNI and local residents as the security operation continues.”