That's a bummer.
My Walgreens still has a photo counter and does develop film, but I suspect they will start phasing them out. Some of the older Targets and Walmarts here still have film development, but newer ones only do send-out service. Costco still develops film here, which is where I go if I want to do a quick roll and I don't care too much if something happens to it (ie, it's not something super special or unique).
My local CVS removed their film developing machines a while ago. They do sell film, surprisingly even 400TX B&W and the C-41 B&W kodak stuff, but it's $10 a roll. Eek. Their color film is cheaper but they only carry Kodak and I think maybe only 400 speed.
It does make me sad. I love my digital camera and I love getting prints from it but I will miss having film be readily available and easy/not too expensive to process. I do have the stuff to do B&W development at home but with 3 kids I don't have much time to do it.