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I don´t think there is commercially made track with a radius of 12" available, so you will have to use flex track for that. Just get a gauge and make sure the track holds the gauge when you lay the track. A 12" radius curve limits your choice of motive power you can run on your layout. Small 0-4-0 or 0-6-0 steam engines and small Diesels like a GE 44 tonner is about the max you can run. I am not sure whether a Bachmann Shay, although the prototype was designed to negotiate sharp curves, will be able to cope with a 12" radius. When it comes to cars, you won´t be able to run cars with body-mounted couplers, which is today´s standard. You will need to get older cars with truck mounted couplers. Last but not least, a 5.1% grade is steep, but not that steep. With your engines being properly weighed down (you may have to add weight), ir should be a problem for a reasonably short train to climb that. All I am saying it can be done, but I certainly would not recommend it. If you are starved for space, consider changing scale.
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