According to a September 2006 study (link to pdf) on the potential for a Vancouver Streetcar, the report's authors have concluded that such a system would indeed be a financially viable option for the city.
The study focused on the first phase of the project, which would link Granville Island to Waterfront Station and cost approximately $102 million to build. Completion of the full line would be preceded by 'phase 0', which would initially connect Granville Island and Science World.
The report suggests that construction on this segment should aim to begin by Autumn 2007, when major reconstruction of First Avenue is scheduled at that time, as part of the redevelopment of the Southeast False Creek Neighbourhood.
Financing hurdles remain, however, as does the need for further study of how the streetcar would be integrated with other public transit services. As a result, it's not clear whether plans could be completed in time for the project to go ahead by late 2007.
