DOTNET_REFERENCE_ASSEMBLIES_PATH DotNet1012 - asp.net-core

Question

I am very new to ASP.NET and I am trying to run an ASP.NET Core app on my Kestrel server. After running dotnet restore, then dotnet run, I am receiving this error:-
The current project is not valid because of the following errors:-
dir/project.json(35, 15): error DOTNET1012: The reference assemblies directory was not specified. You can set the location using the DOTNET_REFERENCE_ASSEMBLIES_PATH environment variable.
Assuming this is linked and fixable via project.json, here is my current project.json:-
{
"dependencies": {
"Bitly.Net": "0.0.6",
"BitlyAPI": "1.0.3",
"BundlerMinifier.Core": "2.2.281",
"Common.Logging": "3.4.0-Beta2",
"Microsoft.AspNetCore.Diagnostics": "1.0.0",
"Microsoft.AspNetCore.Mvc": "1.0.1",
"Microsoft.AspNetCore.Razor.Tools": {
"version": "1.0.0-preview2-final",
"type": "build"
},
"Microsoft.AspNetCore.Routing": "1.0.1",
"Microsoft.AspNetCore.Server.IISIntegration": "1.0.0",
"Microsoft.AspNetCore.Server.Kestrel": "1.0.1",
"Microsoft.AspNetCore.StaticFiles": "1.0.0",
"Microsoft.Extensions.Configuration.EnvironmentVariables": "1.0.0",
"Microsoft.Extensions.Configuration.Json": "1.0.0",
"Microsoft.Extensions.Logging": "1.0.0",
"Microsoft.Extensions.Logging.Console": "1.0.0",
"Microsoft.Extensions.Logging.Debug": "1.0.0",
"Microsoft.Extensions.Options.ConfigurationExtensions": "1.0.0",
"Microsoft.VisualStudio.Web.BrowserLink.Loader": "14.0.0",
"Parse": "1.7.0",
"Spring.Social.Twitter": "2.0.0-M1",
"Stormpath.AspNetCore": "0.7.0"
},
"tools": {
"Microsoft.AspNetCore.Razor.Tools": "1.0.0-preview2-final",
"Microsoft.AspNetCore.Server.IISIntegration.Tools": "1.0.0-preview2-final"
},
"frameworks": {
"net452": {
"dependencies": {
}
}
},
"buildOptions": {
"emitEntryPoint": true,
"preserveCompilationContext": true
},
"publishOptions": {
"include": [
"wwwroot",
"**/*.cshtml",
"appsettings.json",
"web.config"
]
},
"scripts": {
"prepublish": [ "bower install", "dotnet bundle" ],
"postpublish": [ "dotnet publish-iis --publish-folder %publish:OutputPath% --framework %publish:FullTargetFramework%" ]
},
"userSecretsId": "aspnet-ParseAppDashboard-201610080811**"
}