That tie in to improving public property is very common. Often developers are required to put in turning lanes, traffic lights, sidewalks, Etc. on the city's property as a condition of approval for their project.
When I had an investment property built in another city they had a problem with peoples rain gutters that were connected into the city's sewer system, over burdening the system.
A condition of the approval for my project was that I had to go to another property in the city, unrelated to mine, disconnect the connection to the sewer system, and re-plumb the downspouts on someone's private home so that the water ran into the street.
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