Thank you for your reply.
Yes- you are right in that my problem is that the correct base URL does not get used. However- though I may be mistaken- I doubt the problem is in how the test project is set up.
I say this because I can actually get the the test project runs to run the URL that I want by changing the base URL in TestServerTest.testsettings as shown in the picture I attached. I can set it to http://localhost:60712
and the test project will run correctly- however, I don't want to have to change the base URL there- I was hoping I can just use different .testsettings files. I was under the impression that is what they are for. I would like to ultimately set up a test list where the same test runs under one URL and then the other.