The Des Moines City Council has approved a $21,600 economic development loan to help Web development firm Flying Hippo Inc. move to downtown Des Moines.

Urbandale-based Flying Hippo is considering a $2.4 million relocation and expansion project at a downtown Des Moines location. The expansion would create 18 new jobs over the next three years paying an average starting wage of $56,000 per year, growing to an average annual wage at the end of three years of $70,000, according to a report to the council. The company currently has 21 employees.

In addition, the company plans seek state economic assistance under the High Quality Jobs Program, according to the report. Iowa Economic Development Authority staff estimate the company could qualify for up to $142,600 in tax credits and $108,000 in direct financial assistance, according to the report.

The state incentive program requires a minimum 20 percent local match.

Flying Hippo was founded in 2003 in Des Moines and moved to Urbandale when the office it was leasing was demolished as part of the Wells Fargo & Co. downtown expansion. If it moves back to Des Moines, the company would lease 9,000 square feet of office space.