Paneling and Trim - Basement closet

Im in the process of sealing the floor to wall gaps in a condo basement. (after nine days of rain, the carpet gets soaked) and Im almost to a closet that was made when the foundation was poured. The closet walls three walls) has serious water coming in from under the wall next to the floor. Sealing it isnt too bad a job, but it has panelling of some type lining all 3 walls of the closet. It looked like unfinished pressboard at first, but my mother in law insists that it is cedar, for purposes of protecting the clothes hanging in it. My question is this. Since this "cedar has wicked water up about foot high all around and has turned black, what do I do with it? I could cut it off above the water line and then seal it, but if it is in fact cedar, maybe I should just replace it and not get so close to the floor with it in case my floor repairs arent fabulously successful..What would a professional do in this case?

Pull it all! It is all replaceable. You have to apply your moisture retardant under your plates. You don't want mold to grow, and the moist dark area is a breeding ground for it.

I was afraid you would say that, but I cant disagree. Now to get it out of there without damaging the stuff it is mounted to...

I would add, sealing gaps to prevent water infiltration is like sticking your finger in the proverbial dike. You need to find a way to cure the problem, not just treat the symptoms. I wouldnt invest any money in that space until the water problem is addressed. I would suggest you do some more reading on stopping basement water infiltration.

good luck

When this storm hit, almost everybody in the city was clobbered with wet basements. People who NEVER got water got water in this one. I know I also had a problem with footer drains, but I think I have that addressed. IF I owned the land, I would probably put in some more outside drainage, but its a condo association, and they have rules about doing stuff like that. And its not even my condo. I hear you on the finger in the dike but I have to fight this one from the inside of the building out for now.