The config you state doesn't agree with the behavior you describe. With shared key, the server cannot push a route to the client side, so putting a "local network" on the server settings does nothing. You have to put that route in the client side Remote Network box. If that isn't working, there must be something else already defining that route. Either that, or you aren't really set for shared key, but SSL/TLS, in which case you could be missing an override with a remote network/iroute statement.
It would appear from what you observed in the routing table that the client has a route for the server's LAN, but if that's the case, you can't be using shared key.