Would agree with waylew. Either a bushing or bearing that are siezed/rusted. Once you get the bolts out, you will know what it is. If just a brass bushing, then you may be able to salvage them, if bearings may have to find someone with a press to press new ones in. Brass bushing can be machined fairly quickly and thus shouldn't cost to much to get made.
Keep us posted.
edited for clarity.