"A woonerf is a low-speed street where pedestrians and cyclists have legal priority over drivers. In practice, cars, bikes and people on foot mix freely."

See the article here http://americancity.org/buzz/entry/3516/; the photo at the end shows a situation that could work for some Sioux Center alleys which are often abused by drivers and dangerous to the children and pets who are often there. The paving would also be nice.