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Here’s the space back wall is about 11’ x 8’

Here’s an idea of what I want to make

I’m very new to woodworking and it may take me months or even a year to finish this project but I want to be able to say I did it and it was done right. Behind this wall is my workshop/unfinished basement and I have easy access to the studs and other side of the drywall. I have a few quick questions before I begin this project:

1. Should I be removing the back drywall or is building over the existing drywall a bad idea?
2. Is there a certain type of wood I should be using for the frame vs. shelving? Should the wood be treated/sanded, ect. before mounting?
3. Do I need to remove the flooring or is that safe to build on as well?
4. Any other advice/first steps that I may not have thought of?

Thank you r/DIY!