The City Council got an update on a set of major road projects that are facing financial difficulties.

First endorsed by the council three years ago, the Mobility and Infrastructure Initiative is a package of road improvement projects and other investments.

The original initiative plan estimated the overall cost at $299 million and included a funding plan with new revenue generated by property taxes, impact fees, local improvement districts, grants and other sources. So far, however, in the current 2011-2017 capital plan, $78 million has been set aside for the projects, leaving a significant funding gap.

One of the main projects in the initiative is the extension of Northeast Fourth Street, from 116th to 120th Avenue Northeast. The council learned that design work for the project is now about 60 percent complete, though a final road alignment has not been selected. The extension of Northeast Fourth Street, and widening of 120th Avenue Northeast became a controversial subject last year, when property owners gathered enough signatures to void a nearly $7 million contribution in the form of a local improvement district.

A new alternative discussed Monday is the possible purchase by the city of the old BNSF railway corridor from its owner, the Port of Seattle. That could allow the city to use a portion of the BNSF land to reduce road construction impacts on nearby property owners.

Other road improvement projects included in the initiative are: 120th Avenue Northeast (in three separate stages), from Northeast Fourth Street to Northup Way; 124th Avenue Northeast, from 15th/16th Street to Northup Way; Northeast Sixth Street, from 112th to 120th Avenue Northeast; and construction of a new 15th/16th Street (in several segments) in the Bel-Red area, from 116th Avenue Northeast to Northup Way.

The council is expected to provide guidance on the various projects in the initiative, such as design options and funding packages, at its meetings over the next several months.