Idea, just because I'm stuck on dedicated ROW...
aBRT or Streetcar in center lanes, 11' wide. Moving toward sidewalk is a 9.5' flex space. For most of the block length, it's parking. Mid-block this space becomes an 80' long raised platform for boarding bus/tram. Near intersection it becomes a flex thru/left turn lane. 10' thru lane for vehicles between the flex parking/etc area, followed by 9.5' of sidewalk.
Local buses could do one of 2 things: run in the center lanes with the rapid buses and have mid-block stops with reduced amenities (small raised sidewalk about 20' long with small shelter or just a bench). This forces the rapid buses to pass stopped buses, which isn't outrageous (but does reduce ride comfort). Alternately (or required, if it's a streetcar not aBRT), you could also run local buses mixed in with general traffic and utilize signal timing as mattaudio suggested to do far-block stops (cars can pass through using the lane for parking that is dedicated for this purpose for ~80' post intersection).
Urban design nuts might worry about moving traffic directly abutting the sidewalk, but this has become a very calmed street with mid-block crossings for the tram/bus, slightly narrowed lanes, and hopefully good design with trees/planters. 20 mph would feel very safe. And this is in stark contrast to this:
http://goo.gl/maps/3eRVI just south of Lake St. Businesses may complain but reality, again, is that there are still on-street parking spaces, while enhanced transit should make up the difference. A typical block length is ~560', rarely fully dedicated to parking due to curb cuts. This has capacity for a maximum of 25 22' long parking spaces (with what is more like ~20 due to said curb cuts). At minimum (blocks with BRT/tram stations) this proposal has 11 per block, with others retaining 14-15 on blocks without the major transit stops. Obviously, more expensive than the arterial study calculated due to build-out of medians in the street, but everything else should be roughly the same. Thoughts?