This paper is focused on the fusion of radar and wireless communication, called RadCom, which has been extensively studied in recent years for future intelligent transportation systems. We propose a new waveform design algorithm for reducing peak-to-average power ratio (PAPR) in OFDM-based RadCom systems. We consider a flexible and generic RadCom structure in which a number of non-contiguous sub-bands for data transmission are located within a large contiguous spectrum hand for radar detection/sensing. New RadCom waveforms with low PAPR are obtained by carrying out optimization over those subcarriers which are complementary to the communication bands. As an application of the majorization-minimization (MM) optimization method, our major contribution is an l-norm cyclic algorithm which is capable of efficiently reducing the maximum PAPR of RadCom waveforms. We show by numerical simulation results that significant performance enhancements can be achieved compared to OFDM RadCom waveforms from legacy approaches.