People living in a North Sydney neighbourhood say a local motel has become a hotspot for criminal activity, but the business owner disagrees. 

About 40 people gathered Thursday at a local yacht club to share their concerns about Highland Motel on Seaview Drive, which they believe is housing people connected to crime and prostitution. 

Last fall, police arrested a man who had shot up a room at the motel and fired at police. A psychiatrist's report later cleared the man of nine charges — including …