I addition to some of the other good advice posted, I'd recommend deep ripping the entire area before you do anything else. Compaction is one of the most difficult aspects of soil to ameliorate because getting pore space back so that air and water move through it properly is exceptionally difficult. Ripping will give you a huge head start on that, then, with getting as much organic matter, Mother Nature will take it course to build the soil as the Soil Food Web grows and improves.