It is indeed possible to have a city full of low-rise buildings that is still compact enough for excellent transit service—but only if most side streets are used for mid-rise buildings instead of houses.
Chicago's current housing policies aren't protecting or producing affordable housing in gentrifying areas, so Mayor Rahm Emanuel is proposing a restructuring of the government. Advocates are skeptical of the idea.
Englewood is a predominately black neighborhood in Chicago, struggling with vacancies and the effects of failed urban policies. A bike and pedestrian path could be a huge benefit, but that benefit would look a lot different than other parts of city.