Lake Michigan itself doesn't smell bad. Sometimes it can smell fishy depending on the wind. The smell that is really strong sometimes comes from Abbott Labs in North Chicago. I have talked to some of their scientists that say it is not a harmful smell. They say it would be Erin Brokovich like if you could not smell it.
From my house, a little over a mile from Waukegan harbor, sometimes we can hear the lighthouse and boats racing on the lake.

We live one mile from the lake in Lake Forest and never smell it. We often go to the beach and do not smell anything.

Or better yet, drive around and check for yourself--the locals might be so inured to the smell their perception of it might be different from yours.

The best way to find out is to ask the locals.