Actually as I heard it, after the success of the tv series TriStar tried to make a movie sequel based off of the tv series design. However Centropolis and TriStar had a falling out (not sure the situations that led to this). Eventually the time frame got past the alloted time Toho allowed them to own the rights to make Godzilla stuff.
The script treatment for the 1998 Godzilla sequel can be read here: http://the-american-godzilla.wikia.com/wiki/Godzilla_2
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