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As strange as this sounds, I'd recommend getting the 2017 NTRAK Steam annual and reading about the magic that @cbroughton67 worked on my dad's Key H8, and then see if you can do something similar.The keepalive in that locomotive has made a night and day difference in it's ability to actually be used.
I'll probably outsource this.
At the risk of angering the faithful... I'm proud of the around-the-walls plan I drew up for the RGS, but I'm back to thinking variations on a San Juan Central theme.
Build modules?
I think you could make either a walk in or pit style layout a bit more faithful to your setting that works in an 11x11. If you can plan where key benchwork sections are I don’t see why LDEs couldn’t span one or two and have joints fully sceniced that you touch up once you move (in the unsure distant future..) Could you live with a more compressed version? How about around the walls with a hinge or lift out? Discussed this in the past but I have a very bad back as well and the hinged section let me escape a folded dogbone which is huge real estate in HO.