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A parent has pulled their child out of a day nursery because of concerns around alleged drug dealing and anti-social behaviour reportedly stemming from the hostel nextdoor. Last year Monmouthshire County Council approved plans for the old Severn View retirement home to be turned into a hostel for the homeless, but the owner of the nursery nextdoor has alleged that since then the place has been a hive of illegal activity. Staff at the nursery have reported seeing brazen drug dealing and disputes have also been observed by staff. Police have said they will increase patrols around Riverside Nursery in Chepstow after several similar reports in the area. The nursery owner and manager Rachel Luntz said she also recently confronted a man seen operating a drone over the hostel and near the nursery at Regent Way while children were playing outside. Don’t miss a court report by signing up to our crime newsletter here She said: "Stupidly, with hindsight, I went with the nursery manager and confronted him and asked why he was flying a drone and he told us he didn't fly it over the nursery and said he was flying it to see if his mate was in the hostel." Ms Luntz reported that she informed the man his car registration had been noted and she alleged he then became abusive. Gwent Police has said it will increase patrols around the nursery and the former Severn View old people's home. Monmouthshire council received permission from its planning committee in July last year to change the use of the then vacant home, which it owns, despite public opposition. Local residents, 159 of whom objected formally, warned at the time that they feared it would become a crime hotspot. Since the hostel opened at the end of July this year nursery staff said they have witnessed numerous suspected drug deals, loud arguments including when children have been playing outside and when parents have been dropping them off, and general anti-social behaviour including drinking and people openly smoking cannabis. Ms Luntz, who has owned the nursery for a decade, said: "The nursery is very secure. We have processes in place before and we've just tightened them up since the opening of Severn View. The nursery is a very safe environment. "There shouldn't be any impact and there isn't any impact on the children or their safety but, that said, it's already had an impact on the business as a parent has decided to withdraw their child from the nursery directly as a result of Severn View. "More recently we had a response to a questionnaire which asked: 'Would you recommend the nursery?' They said ordinarily 100 per cent they would but in light of Severn View they were not sure they could do that at the moment. I'm not worried about the nursery per se, but the area around the nursery and the type of people as it's damaging to Chepstow." The nursery was among the 159 objectors who were against housing up to 17 people in the former care home. Just before the hostel opened Ms Luntz and her staff were given a tour of the building, but problems arose almost immediately. "We were reassured somewhat, security were there and showed us around and that the nursery wasn't visible from any windows," Ms Luntz recalled. "A couple of days after the visit I was driving back with the nursery manager and we saw a young man in the car park with a bicycle and what was clearly a drug deal taking place and that was within three days of it opening," she claimed. Ms Luntz said every incident has been reported to hostel security and the police were also informed about a drone flying overhead. The council was granted permission to use only the south wing of the 32-bed building, and has ensured 24-hour security on site along with CCTV cameras. The council had planned to provide on-site support for residents, but at a meeting organised by the nursery for parents, attended by council staff and Gwent Police , it was confirmed by a manager that no direct support is currently provided at the hostel. The council has praised the use of the Severn View home as significantly reducing the amount it has had to spend on temporary accommodation such as bed and breakfasts. Inspector Emma Sowrey, of Gwent Police, who attended the recent meeting, said: "We've received several reports and allegations of criminal activity and anti-social behaviour in the vicinity of Mounton Road and Regent Way in Chepstow since August of this year. "Members of the Monmouthshire neighbourhood policing team recently attended a meeting with stakeholders that was hosted and organised by a nursery in Regent Way to hear their concerns. We've since put a patrol plan in place to address any incidents of crime and anti-social behaviour in the area." Monmouthshire council was also contacted for comment. Gwent Police said information about crime and anti-social behaviour can be reported to it including CCTV or dashcam footage.