General requirements. Where the municipal agency determines that off-tract improvements are necessary for the proper development and utilization of the proposed site or subdivision and the surrounding area, it may require either that such off-tract improvements be installed or that the developer contribute to the installation of such off-tract improvements. Where the municipal agency has determined that off-tract improvements are required, it shall be a condition of the granting of final approval that such improvements be constructed or that the developer shall make payments toward the ultimate installation of off-tract improvements such as, but not limited to, streets, curbs and gutters, sidewalks, water mains, sanitary sewers, storm sewers and culverts, monuments and streetlights, all in accordance with the specifications governing on-tract improvements.

Cost allocation. If the municipal agency determines that the developer may contribute toward required off-tract improvements in lieu of such improvements being installed, the municipal agency shall allocate the cost of same off-tract improvements in accordance with the standards hereinafter set forth. The improvement of a stream and/or widening of, or the construction of drainage or other improvements in, a street or road fronting on the tract to be subdivided and/or developed shall not constitute an off-tract improvement and the cost of said improvement shall not be allocated.

Assessment not precluded. Nothing in this section of this chapter shall preclude the municipality from assessing any property benefitting from installation of any off-tract improvements as provided in this section pursuant to the provisions of N.J.S.A. 40:55D, an allowance being made to the respective parcels of realty for payments herein.