I hadn't heard anything along those lines until watching that video either. It seems that the plan is for it to operate almost like a street car along that stretch. The train and its platforms will occupy the middle of the road, followed by a single lane of traffic on either side followed by widened sidewalks. As the plan goes through as the video states that whole whack of centre street looks to be up for rezoning and redevelopment as 2-3 storey commercial. There's probably a tonne of property that is going to be purchased and demolished as a result. Suffice it to say big changes are under way for the area and this project will only be one of them.
Here's a still from that presentation. This is their vision for this stretch of Centre. 1 lane of traffic, wide medians to make room for turning lanes and platforms and wide side walks are all apparent.
Edit: It reminds me a lot of how the roads in Amsterdam around the Museumplein and Concertgebouw are laid out.
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