The palmer valve directs ground water (storm water) into the sanitary sewer which is why municipalities, especially ones like Milwaukee with a combined sewer, encourage homeowners to replace when appropriate. 

The cracking can be from a mistake in construction, ground/water problems or a local tree.Cracking is not good mostly because few are qualified to understand what it means.

Pics of both sides of the wall may help evaluate.For what it may be worth:Rising water typically is ground water or flooding.Condensation has to do with the difference of temperature on opposing sides of the wall along with humidity levels (layman's definition for sure...)Penetration has to do with leaks and differences in pressure on each side of the wall (i.e., strong winds)Multiple potential culprits.  

I can’t wait until that stuff seeps into the groundwater.  

For commercial properties, former dry cleaners can be very problematic. has property always been connected to public sewer or did it use septic system that can discharge pollutants into groundwater. 

Each apartment has one full bath and one kitchen sink, no dishwashers or clothes washers provided (though at least one tenant has a portable clothes washer.)My calculations with the 47 degree groundwater in Michigan lead me to believe that a single 199k btu system, the largest I can feasibly and affordably find, may not be enough to support 4 showers and 8 sinks, even with water savers applied.

And Jay Hinrichs the main reason I would see in scoping a new sewer line like that is it is very common to get what they call a belly in a sewer line which is where the ground underneath sinks in one area causing essentially a low spot and can be very common due the so much change in the ground on a new construction and only wound take one rain or some ground water.

Once Rain hits the ground/water bodies, it is no longer Rain, it isRising Flood Waters. 

I've seen people who have bought properties with net negative values due to soil and groundwater contamination.  

Depending on the type and extent of the contamination there are some allowances for simply leaving it in place, monitoring and/or pumping groundwater and treating that in-lieu of full removal/remediation.