The kick starter arm was somewhat loose and wanted to fall out so took it off, hard to see but the hole in the aluminum arm is oval:
Measured the diameter:
Brought it over to a place where I could borrow a mill, was a bit hard to rig it up to hold the arm but got it after some trying:
Hole enlarged and surface shaved off, skipping the seal that was a the bottom before rather have more surface to connect and take up the force when kick starting the bike:
Next some work on the lathe to machine a plastic spacer:
Spacer done:
Used some glue to secure it even if it was a tight fit to secure it and pressed the spacer in place, then drilled up the hole for the lock bolt and hole where the ball to hold it while folded in.
Was hard to mount it back on the bike since the part on the bike wanted to move and I ran out of time. Ended up with my dad removing the part on the bike and it was no problem getting it back together (he wanted to use the bike).
Works great now! Will see how long this fix lasts, hopefully long since it took a lot of work.