Yes, the older frames will not accommodate a rear sprocket of less that 11T. The were designed based on what was available at the time. That frame looks like a Clad G4 from 2002 or 2003. At that time 9t freecoaster hubs had not yet been made.
If you are going to go with this frame it will require many parts that were in use at this time like a 1 and 1/8" press in headset, America Bottom Bracket (which looks like you have) as well as the 11t to 16t freecoaster.
The decision at this point is to move forward to 2017 or go back to 2002.