I have now laid the two loops. I created additional real estate by having an over hang with the homasote over the birch wood 3/4 inch plywood. The outer loop is O-48 with a 10 inch track in the middle of the curves at the ends. The inside loop is a figure eight with a closed oval and a passing siding on one side with three storage sidings.
The bright colors, tinplate buildings and overall whimsey is inspired by the 1930 Lionel catalog cover which I have attached for comparison.