On July 22, 1999, at 2236 mountain daylight time, a Piper PA-28-160B, N5595W, sustained substantial damage during a forced landing following takeoff from Pueblo, Colorado. The loss of power occurred during initial climb. The commercial pilot and sole occupant received minor injuries. Visual meteorological conditions prevailed for this personal flight which was en route to Spanish Peaks Airport, Walsenburg, Colorado. The flight was operating under Title 14 CFR Part 91 and no flight plan was filed. According to information provided in a telephone interview with the pilot, the aircraft departed runway 26R. About 300 feet above the ground, on initial climb, the engine lost all power while over the intersection of runway 26R and runway 17/35. The pilot said he initiated a left turn to avoid the approach lights and an aircraft that was in position for takeoff on runway 35. After approximately 180 degrees of turn, a landing was conducted partially on taxiway B and partially on the ground next to the taxiway. The aircraft landing gear failed following touchdown and the aircraft nosed over coming to rest inverted on runway 17/35. (See attached airport depiction.) Examination of the engine and engine accessories provided no evidence of mechanical failure or malfunction. The magneto switch, which appeared to have excessive play was tested and functioned normally.