On April 24, 1994, about 1030 eastern daylight time, a Gyroplane, N54WP, registered to William H. Parsons, operating as a 14 CFR Part 91 instructional flight, experienced a total loss of engine power on a crosswind turn at about 150 to 200 feet agl. The pilot made a forced landing on airport property. The gyroplane sustained substantial damage. The commercial pilot/certified flight instructor and student pilot sustained minor injuries. Visual meteorological conditions prevailed and no flight plan was filed. The flight originated from Bunnell Flagler County Airport about 2 minutes before the accident. A witness stated he observed the gyroplane take off from runway 6, and make a crosswind turn at about 150 to 200 feet agl. He observed the propeller stop, and saw the gyroplane enter a glide for a forced landing. In the flare the gyroplane collided with the terrain on the nose gear, nosed over, and came to rest on its right side. Examination of the gyroplane by the FAA, and the pilot-in- command revealed an alternator drive belt on the engine had failed for undetermined reasons. The alternator belt severed the ignition wires, resulting in a total loss of engine power.