It kinda looks like it was drilled out in the picture.... I wonder if the PO was having issues with the bendix spring and had the hole for quick acces to dissengage the gear from the flywheel? There didn't happen to be a hole in the floor boards to match? lol....
Really not sure with this one.... If it was that the starter had too long of a shaft on it, it would have been a bugger to install and get tight and grounded until it wore the hole in..
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Andrew Barr.
1972 Series III 109.
"the Tin Turtle"
"However, that was his ploy and I caved....totally caved...   LOL!" Jellijo 
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