1983 KZ650 - Starter Clutch Repair (Secondary Shaft Removal)

Hello all, this is my first post to the forum and I am in the process of restoring my first bike which is a 1983 KZ650. I was able to get the bike to turn over after about 8 years of being stored after cleaning out the carbs. I then ran into the issue of the starter engaging only momentarily before simply spinning. After researching through the forums I was able to deduce that the starter clutch was the culprit. 

I am currently at the step where I am attempting to remove the secondary shaft but it will only come out so far before it stops moving. I am tapping from the left side of the bike attempting to move it further but I am afraid of damaging the gear (pictured below) because its coming into contact with the frame (sorry not sure the correct term). Have I skipped a crucial step in the removal of the shaft? I'm not sure how to proceed and want to be sure I don't damage something while attempting to remove.

Any help would be greatly appreciated!