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Help with Toronto with Kids

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I will be in Toronto for a conference in mid August and decided to bring the family. We will be staying at The Sheraton Centre Toronto, where the conference will be held. My kids are 8 and 5 and have been fortunate enough to travel quite a bit. For the longest time, their favorite place was Vancouver, Canada. Because they enjoyed their time "up north," (we are from southern California,) I thought it would be a good idea to introduce them to other areas in Canada. A couple of years ago I was in Toronto (Mississaugua) on business and enjoyed myself, though I was just there for a couple of days.

We have a week to 12 days to spend in the area, inclusive of my 2 1/2 day conference. We thought that we would spend 4 to 5 days in Toronto. Kids also want to go to Niagara Falls so we thought we would either (1) take a day trip or (2) spend a night. Any suggestions/recommendation in that regard. A friend of ours recommended Muskoka Lakes. We are researching it but would appreciate any advice. Since we will be in the City for a week, it would be nice to get out of the City and get to a place where the kids can swim and run around.

If we do not go to Muskoka Lakes, we planned to either fly to NYC and spend three (3) days or fly to Chicago and spend (3) days before heading back.

Any suggestion would be great. Thanks a million.

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