You are correct - you do not have to report the $11,270 in damages paid by the county for "taking" your main driveway access.
You cannot, however, claim a business expense for the gravel upgrade to the new main driveway access.
The new access road was required for personal use. Any work done to make it suitable for personal use would be an improvement to your property, and you cannot expense (deduct) the cost of improvements to your home. While the business may benefit from the improvement, your personal need for the new access defined the character of the expenditure as "personal".
