Free wifi would be something that inures to the benefit of the city / jurisdiction, not primarily to the individual decisionmakers or their department. It may not be something legitimate that they can make planning approval dependent upon, but an elected body trying to negotiate something that sweetens the deal for their electorate is completely legitimate.
Indeed, back before California ended development controls, my city's planning department effectively ran a huge reverse auction, picking the housing developments that would make the biggest street and park improvements in excess of the statutory minimums to authorize for each year's development quota. (A bit more complicated than that: various ways that the development exceeded building code or had additional amenities also counted for points in the "competition").