Hi K.,
I grew up in Traverse City (TC) and will tell you it is an excellent family vacation destination. I am not familiar with the details of the Wolf Lodge but would recommend staying near the downtown area which has great little shops for little ones and grown-ups alike. In addition, a short (really short) walk from downtown is Clinch park, a lovely beach with a zoo attached. If you are going during the first 2 weeks of July you will be lucky enough to experience the National Cherry festival which was my favorite time of year growing up (think kids activities galore, parades, air show, fire works, and fun for the grown ups too!). Since TC is a tourist town you really can't go wrong and I think, based on reputation, that the Wolf Lodge would be a fine choice. Keep in mind that wherever you stay, the city is very small and all commuting minimal. A lot of parking is allocated as well. Good Luck and enjoy your vacation.