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because, well, I live here. But there are TONS of things to do. Especially this weekend. The Loop is going to be pretty insane with Taste of Chicago. You may want to stay in the south loop a little ways way from that insanity. The Museum of Science and Industry is actually a bit south from downtown and most of the other museums. It's closer to the Hyde Park/University of Chicago area. I would suggest that you stay near the U of C but it's a bit harder staying there without a car (not impossible, but more difficult).
Anyway, wherever you decide to stay, I recommend you stay near an el stop. I find it far more comfortable and less potentially confusing than the bus. Plus it's a fun way to see the city (unless it's a subway of course ;)).
As far as what activities I recommend, well you'll find no shortage of them. Do yourself a favor and buy a Time Out Chicago as soon as you get into town. Bookstores, grocers and magazine stands should carry it. The Chicago Reader is good too, and it's free, but can be cumbersome and has a lot more stuff you won't need (like apartment listings and long articles). Time Out will list everything going on in the city, categorized by type of activity, along with restaurant reviews, movie listings, museum hours and exhibits, and more. We actually have a subscription and we carry it around with us on the weekends.
You'll want to see Millenium Park. It's located right downtown amidst all the craziness (Taste of Chicago will be just south of there) but it's a really fun way to spend an afternoon. You can splash in the crazy fountain (with huge multistory faces that actually "spit" water at you), marvel at Cloud Gate (aka the Bean), and listen to some mighty fine music.
I personally would skip Navy Pier. It's a worthless tourist trap IMHO. Unless you're bringing kids and want to go to the children's museum, there is nothing really there but ways to waste money. Ditto for Michigan Avenue. Unless you live somewhere without malls (does that place exist?), Michigan Ave. is just a long street full of overpriced department stores, Niketown, and an Apple store. But if shopping is your thing, it will be like nirvana I suppose. One thing on Michigan Ave worth doing is going up to the top of the John Hancock building. It's not as tall as the Sears Tower, but the view is much better and it's usually much less crowded.
If you're feeling overwhelmed by the crowds that will be in the Loop area this weekend, head north to the Lincoln Park Zoo and the lakefront. Admittedly, since it will probably be hot and it's a holiday weekend, everywhere you go in the city will be crowded, but it will have more locals than tourists if that's your thing. There are also a number of neighborhoods worth exploring, depending on your interests. Old Town, Wicker Park/Bucktown, Logan Square, Lincoln Park, Lakeview/Wrigleyville and Lincoln Square (to name a few) are all charming in their own ways and are easily accessible via the el. There are sure to be a number of neighborhood festivals going on (I don't currently have my Time Out with me but during the summer there are ALWAYS festivals) which can be a blast. You may even find a cheeze fry booth at one of them. :)
If you tell me the kinds of activities interest you I can give you some more concrete suggestions. Especially restaurant recommendations. There's lots of good eating in Chicago! If you like ethnic food there are a number of options here.
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