I've never been to Capitol Hill Photo. I've used Moon Photo and Panda, and other than that I've either been processing my film myself or sending it out of state. There simply is no color LF processing in Washington state.
From reading the article, the lab was hanging on by its fingernails for quite some time. It was getting by without having to pay rent, and that's pretty significant. The manager tried to adjust by adding a scanner, but that wasn't enough and the margins were too thin. Now the building is being demolished, and there's nowhere for the business or the machines to go.