You could look into Grand Rapids, MI. It was featured as one of the top 5 places in the US to raise a family. There's lots to do in West Michigan. Of course there are the great lakes and the beaches, but there's lots of hiking, a growing cycling community, skiing and show shoeing in the winter . . . plus its affordable. There's good theater, a diverse culture, and Chicago is just a 3.5 hour drive if you get the urge for a really big city.