We're planning to have a tree cutting service come in and take out a couple of diseased trees in the back part of our lot and then hire someone else to dig out the stumps. These trees are at the base of a small rise, and we're thinking about cutting into the "hill" a little bit and making a low retaining wall, maybe 18" to 24" high. But that's just intended to move the shed back a bit from the house. (Our total lot size is only 5,616 feet with an 1,800 square foot house.) Landscaping change like this won't affect current drainage patters, but anything else might make it worse.
I agree that even at 12x12, things'll be "cozy" inside. That's OK. Keep in mind that this will be a general purpose hobby shed, not just a wood working shed. Even 12x8 would be plenty big enough for building 1 meter wingspan bungee launched RC gliders. And for the electronics projects I do, I only need enough workbench space to do some soldering with a 3rd hand (for electric guitar pedals). If I need more room than the shed offers for wood working projects, I'll just roll the table saw down a ramp and do my cutting outside in the sun.
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We are especially proud of Post Woodworking’s Brunswick style shed. It has all the rugged features and simple, beautiful mystique of a Maine coastline. Natural-wood siding options, in pine or cedar, offer a rustic aesthetic. Or, choose a vinyl color that complements our home. Once inside the Brunswick, its unique, two-sided sloped roof maximizes headroom, making space for you to better maneuver a rake. Black architectural hinges and hardware lend distinguished contrast and quality to this basic but appealing storage solution.